Sponsors received for charity event

Supplier A sponsoring RM500 cash and supplier B sponsoring RM200 cash to our Company. Our company will be using the money received to buy groceries and donate to a “pusat penjagaan kanak-kanak terencat akal”.

Please advise
a. Do we need to issue tax invoice to our supplier for the donation? if yes, what tax code to apply?

b. How to account for the input tax on the groceries that we donate?

Please advise, thanks

Asked on April 12, 2017 2017-04-12 06:17:20 Business (商家)
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2 Answer(s)

If the sponsorship does not involve any identifiable benefits in return, then the sponsorship payment is not a consideration for the supply.
Whether or not a registered person claims the input tax on the goods, the registered person still has to account for GST if the  goods is worth more
than RM500.

Answered on April 12, 2017. 2017-04-12 09:52:47

If charge gst on the sponsorship, do we need to issue a tax invoice for it?

on April 13, 2017. 2017-04-13 07:28:29
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Answered on April 13, 2017. 2017-04-13 08:11:39
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