VAT in Events

VAT in Events

 

How to maximize the recovery of VAT in event organizing/MICE?

 

Does your company recover the VAT?

First, we must define if your company can recover the VAT. How to know if your company recovers the VAT? Nothing more simple, ask your administrative and financial director or your accountant. Without generalizing, as every company is unique, companies generally recover VAT when the expense is exposed in the interest of the company.

But there are exceptions

Exceptions depending of the form of the company (generalities)

  • Associations don’t recover VAT
  • Auto-entrepreneurs don’t recover VAT
  • Small structures that have opted for franchising of the VAT
  • Exceptions depending on your activity
  • Bank and Insurance don’t recover VAT for example
  • Exceptions depending on the type of expense
  • For example, the VAT expenses on tourism vehicles are not deductible

Once you have analyzed if your company can recover VAT (generally a question to ask yourself is: does my company collect VAT?), you can analyze the event or MICE expenses that are deductible.

 

Analyze of event expenses

Yet again, we must refine the analysis as the location of the event is important. Abroad each country has its own rules, you will surely need the help of a tax lawyer.If your company is based in France and the event or seminar is organized in France it will be easier.

Then, it depends on the type of organization of your event or seminar.

  • Seminar, meeting or event organized by yourself: maximized deductibility
  • Seminar, meeting or event organized by a travel agency: VAT deductible only on the margin realized by the agency if they state it on the invoice. The deductibility is not optimal
  • Seminar, meeting or event organized by an agency under a mandate contract: maximized deductibility

Finally, certain expenses are deductible, others aren’t.

  • Restoration: Deductible
  • Hall rental: Deductible
  • Team Building: Deductible
  • Overnight stay for staff or manager: Non Deductible
  • External overnight stay: Deductible
  • Technical: Deductible

 

We are talking here of one part of event organizing and MICE (Meetings, Incentive, Congress and Events) including seminars.

Warning! For VAT to be deductible, other than what has been previously stated, the invoice must contain certain mentions, we call these conditions of form (invoice > 150€, tolerance above)

  • Client’s intercommunity VAT number
  • Complete name of the supplier and the client
  • Date of issue
  • SIREN Number
  • Heading of the article
  • Quantity
  • Unit price
  • VAT rate

In any case, it is essential to get this analyzed by your financial service or by professionals.

You want to maximize the VAT recovery in the MICE, event and seminar organizing?

Contact us, we manage these difficulties since 2004!

 

Article written in 2014, taxation changes every day…

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