Vat in the Organization of Events in Spain
We have dealt with this issue in a previous article and, more specifically, we have explained in depth the context of SUCOE, which is imperative to fully understand how the billing system works in this field. In this article we shall speak about the VAT for travel agencies in general, in the organization of events in Spain and how it affects each type of service ordered.
Type of clients
Everything we speak about is based on the relationship between companies, which is B2B. The relationship is between companies. When our client is a private person the REAV system will be used; this concept will be explained further down in this article.
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Types of services
Each type of service will be affected differently by the VAT:
Event Organization Service SUCOE:
We have already explained in a previous article what SUCOE is: any type of event that has the meeting as its main component, it is a business trip. All services are billed in one invoice and under one sole concept. Spanish clients will incur a total 21% VAT which can be deducted in its entirety. Clients who come from outside Spain will not have VAT added to their bill. They are not considered as SUCOE, neither are Incentive Trips, nor services provided to those who accompany the delegates who attend a SUCOE event. In these 2 cases the invoice will be billed as per the regulations of the Package Trip explained forthwith.
Package Trip Service (REAV):
This also provides one sole service but its main component, in this case, is the Accommodation and/or Transport. These services can also have other complementary services that form part of the event itself. The billing system for this service will be governed by the REAV or Special Regime for Travel Agencies: the VAT is included and is not deductible. If agreed upon and considered suitable by the Agency and the company client, this regime can be waived and the bill invoiced as Individual Services, a concept we shall explain in the next point. We can waive the REAV when our clients are nationals, from the EU or from outside the EU but with reciprocal agreements. There are only certain limitations with countries with whom there is no reciprocal agreement. In this latter case we can only waive the REAV when we speak of individual services related to attending a congress or fair and of a professional nature.
Individual Services (RG):
In this case the General Regime would be applied, which means each service would be specified accordingly on the invoice, with the corresponding VAT, which would be deductible depending on the tax laws of the contractor. Here is a list of the most common services and the corresponding VAT the client would pay, depending on where from:
- Accommodation. Depending on location. In Spain it is 10%.
- Transport. Depending on where travel takes place. In Spain it is 10%.
- Depending on where the service is provided. In Spain it is 10%.
- Entrances to museums, fairs, congresses, concerts, shows… Depending on where held. In Spain it is 21%, except for some fairs and exhibitions of a commercial nature for which 10% VAT is applied.
- Vehicle rental. Depending on where the traveller contracts the service. In Spain it is 21%.
- Professional services, such as guides, hostesses, attendance, translators, entertainment, team building, rental of audiovisual material …, VAT will be established by the area where the client company is based: for Spanish companies it is 21% and for companies outside of Spain 0%.
- Rental of space. Depending on the location of the venue contracted. In Spain it is 21%.
- Insurance Services. VAT will be established by the area where the client company is based: for Spanish companies it is 21% and for companies outside of Spain.
We trust this article is of interest and use to you. If you would like to know more please contact us and we shall be delighted to assist you in all your needs.
*Note: The article is focussed towards those clients who understand these systems. If you are a Spanish agency you should go over fiscal obligations and billing with your accountant, looking into the implications of each one of the regimes we have commented on.
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