VAT AND PROVISIONS RELATED TO UEFA CHAMPIONS LEAGUE AND EUROCUP 2020

UEFA EURO 2020 has a new format as it will be held in 16 venues in 16 different European countries, one of which is the San Mamés Stadium in Bilbao, Spain.

The economic implications that an event like UEFA EURO 2020 entails are evident, especially considering all the companies in different sectors that may participate. In turn, it is common for these types of eventual events certain tax implications that should not be overlooked.

These developments come from the Additional Provision 1 of Royal Decree 27/2018, which, although being applied since 2019 with the celebration in Madrid of the UEFA Champions League final, is once again fully up to date since Bilbao is one of the cities selected for the tournament dispute in 2020.

In particular, this Royal Decree determines a number of tax measures only applicable to activities related to this event, which from the point of view of VAT, deserves special attention.

In the first place, for those taxable people not established in the Community, who borne input VAT quotas, it will not be necessary, to claim the refund by the special procedure for non-established taxpayers regulated in article 119.bis of the Spanish VAT Act, to be established in any of the countries with which Spain has a reciprocity agreement in place. This is an exception to the provisions of number 2 of article 119 bis of Law 37/1992, and will be applicable provided that such quotas are related to activities linked to the celebration of this UEFA EURO 2020. This opens the door to entities of all those non-Community countries with which Spain has no reciprocity agreement.

Secondly, there is a total tax exemption for imported goods in order to be used in the celebration of this event. The deadline for the goods to remain in the Spanish VAT territory will be until December 31, 2021.

Finally, it should be noted that there is an exception to number Two of article 70 of Law 37/92. In accordance with this Royal Decree, this article will not be applied with respect to the services provided by taxable persons resident in Spain and incorporated on the occasion of the UEFA EURO 2020 event, while related to the organization, promotion or support thereof.

In accordance with Article 70 Two mentioned above, in general, for certain services that according to the VAT location rules are not understood to be performed in the Community, but their use or effective exploitation takes place in Spain, would be deemed as placed in the territory of application of VAT.

Therefore, in accordance with the exception established in the Royal Decree, this provision would not apply and would not be deemed as placed in the VAT territory despite having used or enjoyed in Spain. There is a plurality of services that, normally, can be connected with the celebration of this event such as: the leases of means of transport, those provided electronically, telecommunications, broadcasting and television, mediation, as well as those indicated in section Two of article 69 of the Law (advertising, advice, insurance, reinsurance …).

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