Chamber of Commerce, quote:
'If you sponsor as an entrepreneur in exchange for publicity, the sponsorship costs are 100% deductible. Sponsorship then takes place from a business point of view. Think of brand awareness, product or brand introduction and staff recruitment. The VAT is also processed as input tax in your turnover tax return.
The sponsored person issues an invoice to your company and VAT is charged on these sponsorship contributions. This expense item is also deductible if your company suffers a tax loss in the year in question.