The Author of the Article
For many international non-profit organisations, the VAT analysis was done years ago.
Since then, the organisation has changed : new membership services, more sponsorship, larger conferences, new funding, activities in other countries with local employees or offices,etc.
Has your VAT status changed with it?
For VAT purposes, being a non-profit does not give you one blanket exemption. Your treatment depends on the activities you perform, the income you receive and where those activities take place.
That means an organisation can have, at the same time VAT-exempt activities + taxable activities + activities outside the scope of VAT.
And this distinction directly affects both VAT you charge and VAT you can recover.
Where do we see the biggest risks or opportunities ?
Membership fees
Are all membership activities still covered by an exemption ?
Sponsorship
Are “sponsorship” and “partnership” payments genuinely contributions, or are you providing advertising, visibility, tickets or other services in return ?
Events, congresses and webinars
Are registration fees, exhibition fees, sponsorship, catering and other event revenues receiving the right VAT treatment?
Did you apply different rules for online events ?
Donations and subsidies
Are they genuinely outside the scope of VAT, or are some linked to specific services or deliverables?
International activities
Could events, staff or activities abroad create VAT registrations in other countries? Could your presence abroad constitute a VAT fixed establishment?
Are you recovering all the VAT you are entitled to recover?
For an organisation with substantial event, professional and operating costs, an incorrect VAT classification can translate into a significant and recurring cost.
The expert’s eye
A VAT status review can identify:
→ VAT being charged unnecessarily
→ VAT exemptions that may not be being used
→ VAT incorrectly treated as outside the scope
→ VAT registrations missing in other countries
→ Fixed-establishment issues
→ Input VAT that is not being recovered
Does your VAT status still fit for purpose?
At Ryan Belgium, we help international non-profit organisations review their VAT profile activity by activity and country by country, and identify both compliance risks and potential VAT recovery opportunities.