Due to the multiple scenarios that can arise from the supply of services related to the organization of events, fairs and/or congresses, the VAT treatment for this type of services can lead to a wrong interpretation as regard the place of supply rules.
In this regard, the companies aimed to this organizational activity could supply a service involving a full organization of the event, this including the rent of the space, installation and assembly of stands, promotion, technical means, sale of tickets and other ancillary services or, on the contrary, could supply a single service such as the rent of stands or a limited area. Moreover, they could be just a tickets provider, without participating in the event’s organization.
On the other hand, also the recipient of the service, according to its condition of final consumer (B2C) or taxable person (B2B), as well as established or non-established for VAT purposes within the Spanish VAT territory, could have influence considering the VAT treatment of the service.
On the basis of the aforementioned circumstances there could be scenarios where the service is deemed to be placed in the country of establishment of the recipient or in the Spanish VAT territory if this is the country where the event takes place. Furthermore, even placed in the Spanish VAT territory, the VAT taxpayer could be shifted to the recipient on a reverse charge basis, thus no VAT be charged by the supplier.
In this sense, correct interpretation of the service supplied and the place of supply rules or taxpayer condition are critical in order to establish the VAT obligations for the service provider, in terms of VAT registration by non-established entities, VAT collection and regular filing of VAT returns.
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