www.uktraining.info


 

VAT and Events - One-Day Seminar - £225 Per Person


OUR SEMINARS

VAT and Events - the new rules


EU VAT and Cross-Border Trade
The Essentials of UK VAT
The Essential Guide to UK VAT and International Trade
The Essential Guide to UK VAT and International Services
The Essential Guide to UK VAT for Purchase Accounting Staff

The Essential Guide to UK VAT for Sales Accounting Staff

The Essential Guide to Financial Accounting Procedures and Controls

The Essentials of Employment Law
The Essential Duties of a Company Director
The Essentials of Company Administration
The Role of a Company Secretary in the 21st Century
The Essential Guide to IFRS


Employment Law - One-Day Seminar - £225 Per Person

 

 
 

 

Will the new VAT rules make life easier for you when organising events? Probably not....

Stephen SmithI am concerned that the new rules regarding the supply of events will not simplify the situation and could for some make the situation more complicated.

Peter Hughes and I have been working closely with HMRC to establish the correct VAT treatment when organising events.  I am very grateful to HMRC for trying to convince the other member states of the EU to make the supply of events fall under the general rules for the supply of services. Unfortunately this will not be the case if you charge people to attend an event. This will be treated as the supply of an admission to an event and therefore an exception to the general rules.  The place of supply will be where the event is held.

Do you know the impact that this will have when you organise events in an EU country in which you are not VAT registered?


The place of supply rules regarding events can make it necessary for you to register for VAT in each of the EU countries in which you organise events. If you charge people to attend the events, then this is the supply of ‘an admission to an event’.  The rules apply to events such as educational seminars, conferences, exhibitions, shows, theatrical performances and concerts as well as sporting events such as matches and competitions.  There are also ramifications for groups of companies that hold meetings in various EU countries and charge out the cost to their participating companies.

If you are registered for VAT in one EU country and you wish to organise an event in any of the other 26 EU countries you will need to register for VAT in the other EU countries in which you organise the events should you want to allow any paying people to attend the events.

The act of registering for VAT in other EU countries is not a straightforward matter.  As a VAT registered organisation in one EU country wanting to register for VAT in another EU country you may find that the country’s tax authority will only communicate with you in its language.  So if you do not have someone to hand who speaks the other country’s language fluently life can be difficult.  Also we should not forget that although each EU country observes a common framework of VAT there are differences in each country.

So how do you organise events in other EU countries without having to register for VAT in the respective countries?  If the events are only for the benefit of business customers then you might wish to consider restricting the admission to business customers that are resident in the particular EU country in which you organise the events.  Many EU countries allow non-resident suppliers to organise events for resident business customers without registering for VAT in their country.  They will give you the option to raise reverse charge invoices in these situations.  But let us be clear on this: for this to work you cannot allow a business customer that is not resident in the country in which the event takes place to attend the event, nor can you allow a non-business customer to attend.  If you do, you will have to register for VAT in the country.

I expect that many of you are saying that this will not work for you because you would not want to restrict the admission to business customers that are resident in the country in which the events take place.  Is there another option?  Yes, if you want to consider a partnering arrangement with an organisation that would host the events for you and is already registered for VAT in a particular EU country in which you want to organise the events.  The host organisation would raise invoices using its VAT registration number in that country in respect of the attendees’ admission fees and you would send reverse charge invoices to the host company.

Not ideal by any stretch of the imagination.  I have even heard people describing the situation as ludicrous.  Nevertheless we are stuck with it.  The rules certainly don’t help us to present our seminars at venues throughout Europe.  Fortunately we have the facility to present our seminars as live online events. I think of our online seminars as events but the tax authorities think differently. They stipulate that we apply the general rules for the supply of services. Exactly what we would like to do with our seminars at public venues. If this is not 'ludicrous' then I will settle for 'bizarre'.

As you can see there are many pitfalls that you need to avoid when it comes to organising events.  To help you understand fully the new VAT rules regarding events we are presenting a LIVE online seminar on 6th April – go to this web page for details.

Stephen Smith
Managing Director
UK Training (Worldwide) Limited

 


Who is this e-mail from?

UK Training (Worldwide) Limited is registered in England and Wales. Registration number: 2695623.
Registered office: 17 Duke Street, Formby, L37 4AN.

 

Follow UK Traiing on Twitter More details