Deal | BDO defended interests of sports events sponsor
28 September 2018
BDO’s Tax team successfully defended its client, a sports events sponsor in connection with a dispute before the Latvian Tax Administration.
The client purchased an advertising service from a basketball club and paid VAT thereon. The State Revenue Service did not permit the client to deduct the VAT on the ground that the advertisement was a donation. BDO successfully challenged the State Revenue Service’s decision.
It is important to understand the difference between donations, sponsorship, and advertisement purchases when supporting sports and cultural events in Latvia.