CTAX Blog: VAT news for international associations holding events abroad.
As of 2021, the VAT rate for admissions to events in France is now 10%, down from 20%. This means you will have to collect less VAT on the registrations fees so your pricing will be more attractive. This only applies to in-person registration fees. Registration fees bundled into packages do not qualify for the reduced rate. This does not affect the amount of VAT you can claim back on expenses.
Well it’s been one heck of a year! There have been many shakeups in the meetings industry already and we can expect more in the coming months. We are all looking forward for 2020 to be put in the history books and to let 2021 take over.
As associations start planing new IN PERSON meetings for late 2021 and 2022, this is a great opportunity to get a head start. One service CTAX offers is a free analysis of competing host countries. With a one or two page document, your meetings director can have all the sales tax related information and key differences between a few host countries enabling them to make an informed decision that could help your association’s bottom line.
Contact me directly and I will be glad to prepare such a document.
Cedric
The new VAT regime is now in place in the UAE. Hosting an event in the UAE will, in most cases, trigger the reqirement to register. This will allow you to claim back the VAT on expenses. Most participants from outside the UAE can avoid being charged VAT based on special regulations.
Keep in mind that registration is required from the first sale.
Japan sales tax is called Japan Consumption tax (JCT) and applies to all sales. The registration threshold is 10M Yen of taxable sales in the last two full years. For associations holding a one-off event in Japan, this means that registration isn't required. Only if you hold events in multiple calendar years, would registration be required.
Due to recent changes in the Australian tax laws, sponsorship sold by a non established entity holding an event in Australia is now outside the scope of GST. In other words, you will not be required to charge GST on the sale of sponsorship and sponsorship packages connected to your event in Australia.
Spain is a very popular destination for meetings and for good reason. Spain has beautiful cities, friendly people and warm weather. The tax laws are, however, more complex than other EU countries:
1. Registration requires various documents to be certified by either an Apostille or by the local Spanish consulate. This can usually take a few weeks.
2. Refunds are technically not possible for non-established entities. This means that care must be given to avoid a refund position when the activities have ceased.
In short, it's very important to be able to reply on a reputable and knowledgeable firm in Spain (a local agent is mandatory). This will avoid a headache down the road.
For the first time since 1993, the VAT rate in South Africa will increase from 14% to 15% effective April 1st 2018. VAT vendors are advised to start implementing the necessary changes in its accounting system to ensure that the correct rate is applied effectively from this date.
As of January 1st 2018, the VAT registration threshold of 100,000 CHF in Switzerland is now based on wordwide income. This effectively means that most business doing business in Switzerland will need to register. Previously, only income generated in Switzerland counted towards the 100k threshold.
The Italian authorities have further clarified the deduction rights of VAT on expenses. Expenses paid in 2017 must be claimed by April of the following year, but an exception is now granted for 2017 expenses that the invoice is received in the following year. For example, if an expense invoice is received 2018 you will have until the end of 2018 to claim the expense even though the expense is relevant to 2017. This obviously applies to very few transactions but could be useful in certain cases.
Due to a recent changed in Italian tax law, there is a new dealine to reclaim VAT paid out on expenses. From now on, VAT paid out during a calendar year will need to be claimed back before April of the next year. This nearl custs the deadline in half.