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”.
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
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