Membership
Donation
in the service of associations

Sponsoring

Office Obstruction
Sponsors are persons or organisations that support certain projects or events with larger contributions and receive a reward in return: brand mentions, space for logos, performance opportunities, advertising space, etc. Sponsoring is a marketing measure and therefore constitutes a kind of business (as opposed to patronage). The details of the mutual commitment are recorded in a contract. The promotion of sponsor relations is important for the association.
Question

As an association, are we subject to value-added tax? While we do not generate any actual turnover and member fees are not subject to value-added tax, we do receive sponsorship funds.

Answer

It is important that the committee enquires about value-added tax, as a self-declaration requirement applies here. Generally speaking, sponsorship revenues are subject to value-added tax, provided this is genuine sponsorship. Simply naming donors in an annual report, for example, does not belong to this. Sponsors are organisations or individuals that usually support the association with larger amounts and receive something in return: space for logos, advertisements, appearance opportunities, advertising space, etc.

The good news: value-added tax is only payable for non-profit, volunteer-run associations from an amount of CHF 250,000 rather than CHF 100,000 as is the case for all others.

Supported by

Age-Stiftung
Binding Stiftung
Ernst Göhner Stiftung
Mercator Schweiz
Migros Kulturprozent
Schweizerische Gemeinnützige Gesellschaft SGG
Stadt Zürich