Åbolands Ungdomsförbund arranges, when needed, formation courses on urgent subjects. The member associations are welcome to contact and describe what kind of formation courses the association needs.
Åbolands Ungdomsförbund organized in collaboration with Kimito UF an information event on association taxation for its member associations and other interested parties on Tuesday, May 12, 2015 at. 18.00 in the Wrethalla clubhouse, Museivägen 4, 25700 Kimito.
The event started at 18.00 with a speech by Charlotta Långström from the Swedish Tax Agency regarding association taxation. She also answered questions that arose during the evening.
The participants actively interacted and received answers to various questions, such as:
What is the difference between a profit and public organisation?
The term non-profit association is used by agencies as the association register, while the tax authority describes the same type of association as "public utility organisation".
Do you have to pay income tax on a shared apartment?
Rental income from a shared apartment is tax-free income for a non-profit association, provided that the shared apartment is not part of the business activity.
When do you have to pay tax on property income?
Property income constitutes taxable income for a non-profit association if a property (or part of it) is used for reasons other than for public or non-profit use. The tax rate for a non-profit association's property income is 7.93% in 2015 (7.67% in 2014). If more than half of the property is used for the association's activity, the property constitutes taxable association income.
What constitutes the business income?
Assessment of what is a business activity is always done on a case by case basis, taking into account the circumstances as a whole. Characteristics of business operations include, among other things, that the business concerns customary products, is continuous, competitive, uses common market prices, extensive operations, pursues profits, etc. Opposite factors, in turn, indicate that the activity is not a business one. For example, for a non-profit association is usually not counted as a business activity a dance event and serving / sales of food in connection with the event.
For how long is the tax and administration's statement in effect?
A decision or statement is valid until a new decision or any change is made, but may also be applied for a certain limited period of time. Any changes should be announced as soon as possible. For example, if on one particular year the association's turnover rises above EUR 8,500 and the association becomes liable for VAT, they must also report when the taxable business ceases. From 1 January 2016, this limit will be increased to EUR 10,000.
Do you have to pay VAT for lotteries?
VAT is not paid for lotteries. Lottery income is in principle tax-free in income tax, but the association is taxed according to the Lottery Tax Act for the implementation of lotteries. When it comes to lotteries, this tax does not have to be paid if the lottery's return is less than EUR 3,333.33.
Is it mandatory to have a cash register to print receipt to customers?
No, the receipt can be written by hand, as long as it is clear which parties are involved, the time and place, and the sum.
Must all associations fill in the tax declaration?
All associations, including those receiving tax relief, should complete the tax declaration annually within four months of the end of the fiscal year, usually on 30.4 if the fiscal year follows the calendar year. The Swedish Tax Agency notifies the associations if the declaration lacks information or what specific information they need.
If the tax authority reviews the association's activities and finances, which and how much old documents can they request?
The requirements vary from case to case, but receipts and vouchers should usually be saved for six years after the end of the tax year.