Tax deduction for sports sponsorship
Sponsoring a club or team isn't just an image move: when properly documented, sports sponsorship is a deductible advertising expense for your company. Here's a general overview so you know what to expect before taking the step.
It's an advertising expense, not a donation
When your brand appears on a team's kit, the sponsorship is documented as an advertising contract. With the corresponding invoice, it's a deductible expense for corporate income tax purposes, like any other marketing action.
Input VAT and documentation
Since it's the provision of advertising services, the transaction carries VAT, which your company can deduct under the general rules. What matters is having a contract, an invoice, and proof of the advertising consideration.
Local impact at a lower net cost
The tax saving reduces the effective cost of the action: for every euro invested in sponsorship, part of it is recovered through the deduction, while the brand gains ongoing visibility and an emotional bond with the community.
What you need to justify it
- · A signed advertising sponsorship contract with the club or team.
- · An invoice issued by the sports entity with the corresponding VAT.
- · Proof of exposure: photos of the kit, posts, signage or events.
This information is general and for informational purposes only; it does not constitute tax advice. Always consult your advisor before applying any deduction.
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