VAT-in-brief: Events, Exhibitions and Conferences
By Toon Hasselman, LIMES International B.V.
Admission to events that take place in the Netherlands are subject to Netherlands VAT (currently 21%).
Hosts need to register for VAT in the Netherlands for admission, ancillary (e.g. use of cloakrooms and sanitary facilities) and catering services, provision of exhibit space and tickets to conference parties. An all-in fee (currently admission: 21%, catering: 6%, hotel and transportation: 6%) may have to be split between its elements.
Deduction of VAT
VAT on event costs is deductible, however, not on catering expenses unless this is first agreed with the Netherlands Tax Service.
Managers provide a wide range of services in relation to an event, from invoicing in its own name or the name of the host, to any and all support services. What the VAT consequences are depends on how the contract between the manager and the host is set up. Regardless, either the host or the manager will be required to register for VAT.
Travel Agency Regulation (TAR)
It may well be that a business makes supplies that fall under the TAR if such business buys and sells services such as hotel accommodation, passenger transport, or excursions to delegates in its own name. As TAR is a relatively new concept in the Netherlands the application of TAR in relation to event hosts and managers is not totally clear.
When a foreign manager or host is obligated to register for VAT in the Netherlands, it is a well-established practice to discuss and agree the VAT treatment of an event with the Netherlands Tax Service.
Toon HasselmanLIMES International B.V., Valkenburg ZH, The Netherlands
T: +31 88 089 90 00
LIMES International B.V. is an independent international tax consultancy firm specialising in cross-border issues. It focuses exclusively on companies and expats that cross borders, providing them with a broad range of integrated solutions in tax and expat, legal, payroll, immigration and relocation, pension and insurance, HR, and VAT and customs services.
Toon Hasselman is an experienced high quality VAT and Customs Specialist to both national and international companies. He provides simple and practical solutions, “outside-the-box” alternatives and promotes a no-nonsense approach with a conclusive solution at fair cost. Toon is also the Global Vice-Chairperson of the GGI Indirect Taxes Practice Group.
Published: Winter 2017 l Photo: stocktributor - Fotolia.com