VAT

VAT Regulations

Due to VAT regulations set out by the European Union, and specifically by Germany, we are legally obliged to charge 19% German VAT on all delegate registration fees regardless of the company’s country of origin or VAT registration status. 

In some cases where an exhibition booth is requested, German VAT may or may not apply.  Likewise, for sponsorship, German VAT may or may not apply. 

For a full overview of how VAT will be charged in your specific case, please refer to the below:

 

Charge Type Company is… German VAT charge @ 19%

Registration

 EU (VAT registered) YES
EU (non-VAT registered) YES
Non-EU YES
Germany YES

Exhibition Space

 EU (VAT registered) NO
EU (non-VAT registered) YES
Non-EU NO
Germany YES

Sponsorship

 EU (VAT registered) NO
EU (non-VAT registered) YES
Non-EU NO
Germany YES

Clarification as to why VAT is charged on WYSE Travel Confederation Events being held in Europe

In Europe, conference registrations attract VAT (Value Added Tax) even for VAT-registered companies due to specific rules and regulations governing the place of supply of services, particularly concerning event organisation, particularly WYSTC, STAYWYSE and WETM.

Here are the main reasons:

1. Place of Supply Rules:

  • For business-to-business (B2B) transactions, the general rule is that the place of supply of services is where the customer is located. However, there are exceptions, particularly for services related to events such as conferences, exhibitions, and educational seminars.
  • According to the EU VAT Directive, the place of supply for admission to events is where the event actually takes place. This means that if a conference is held in a specific EU country, the VAT of that country applies, regardless of where the attendee’s business is located.

This is why VAT is charged on WYSE Travel Confederation Events.

2. Admission to Events:

Admission fees for conferences, trade fairs, and exhibitions are treated differently under VAT rules. These fees are subject to VAT in the country where the event takes place. This ensures that the local tax authorities can collect VAT on activities happening within their jurisdiction.

3. Non-Recoverable VAT:

For foreign businesses attending conferences in an EU country, the VAT charged on registration is generally not automatically recoverable through the regular VAT return process. Instead, these businesses must use the VAT refund procedure for non-established businesses, which can be cumbersome and time-consuming.

4. Uniform Application Across EU:

The EU VAT system aims to apply VAT uniformly across member states to avoid distortions of competition and ensure a fair tax environment. This includes specific rules for the place of supply of services, which apply uniformly to all member states.

5. Revenue for Host Country:

Hosting conferences often brings significant economic benefits to the host country, including VAT revenues. By ensuring that VAT is collected locally, the host country can benefit from the economic activity generated by these events.

In summary, the application of VAT to conference registrations in Europe, even for VAT-registered companies, is primarily due to the specific place of supply rules for event-related services. These rules are designed to ensure that VAT is collected in the country where the event takes place, aligning with EU regulations and supporting local tax authorities.

What is the EU Directive that mandates this?

The EU directive that governs the place of supply rules for services, including those related to events such as conferences, is the Council Directive 2006/112/EC, commonly known as the EU VAT Directive. Specifically, the rules regarding the place of supply of services for events can be found in:

  • Article 53: This article states that the place of supply for admission to cultural, artistic, sporting, scientific, educational, entertainment, or similar events, such as fairs and exhibitions, is where those events actually take place.
  • Article 54: This article extends the place of supply rules to other services relating to such events, such as the services of organizers.

These articles ensure that VAT is charged in the country where the event is physically held, regardless of where the business customer is established.

Can the VAT be claimed back and by whom?

Yes, the VAT paid on conference registrations can be claimed back, but the process and eligibility depend on the country of the company and the country where the VAT was paid. Here is a general outline of the process and who can claim it back:

1. EU-Based Companies:

EU VAT Refund Directive (2008/9/EC): Companies established in an EU member state can reclaim VAT paid in another EU member state under the EU VAT Refund Directive. The refund application must be submitted electronically through the tax authorities in the company’s home country.

Eligibility: To be eligible, the company must be engaged in taxable activities and must not have a fixed establishment in the country where the VAT was paid. The VAT refund claim must be made within a specific period (usually by September 30 of the following year).

2. Non-EU-Based Companies:

13th VAT Directive (86/560/EEC): Non-EU companies can reclaim VAT under the 13th VAT Directive, but this depends on the principle of reciprocity. This means that the non-EU company’s home country must offer a similar refund mechanism to EU businesses.

Eligibility: Similar to EU-based companies, non-EU companies must not have a fixed establishment in the EU country where the VAT was paid. They must also provide the necessary documentation and follow the procedures stipulated by the EU country where the VAT was incurred.

Refund Application Process:

The refund application for non-EU companies is typically more complex and must be submitted directly to the tax authorities of the EU country where the VAT was paid. The required documentation may include the original invoices, proof of payment, and a certificate of tax status from the home country.

Documentation and Deadlines:

Regardless of the company’s location, the refund process requires specific documentation such as original invoices, proof of payment, and sometimes a certificate of VAT status from the company’s home tax authority.

Deadlines for submitting VAT refund claims are crucial. For example, applications for VAT paid in 2023 must generally be submitted by September 30, 2024, for EU-based companies. Deadlines for non-EU companies can vary depending on the specific country’s regulations.

Professional Assistance:

Due to the complexity and varying requirements across different EU countries, many businesses use VAT reclaim services or consult with tax professionals to handle the refund process. These services can help ensure compliance with all local requirements and maximise the chances of a successful refund.

In summary, VAT paid on conference registrations can be reclaimed by both EU and non-EU companies, provided they meet the eligibility criteria and follow the specific procedures set out by the relevant EU VAT Directives and local tax authorities.

Procedure for claiming back VAT from Portugal

To claim back VAT paid on conference registrations in Portugal, the process differs depending on whether the business is based within the EU or outside the EU. Below is a detailed guide for both scenarios:

For EU-Based Companies:

EU-based companies can claim back VAT paid in Portugal under the EU VAT Refund Directive (2008/9/EC). Here are the steps:

1. Access the Electronic Portal:

Use the electronic portal provided by the tax authority in your home country to submit the refund application. This portal will forward the application to the Portuguese tax authorities.

2. Prepare Documentation:

Ensure you have all necessary documentation, including original invoices showing the VAT paid, proof of payment, and your VAT registration details.

3. Submit the Application:

Fill out the VAT refund application form on your home country’s portal. Provide details such as the period for which the refund is being claimed, the nature of the expenses, and the amount of VAT paid.

4. Deadline:

The application for VAT paid in a particular year must be submitted by September 30 of the following year. For instance, for VAT paid in 2023, the application must be submitted by September 30, 2024.

5. Processing Time:

The Portuguese tax authorities will process the application and may request additional information. They generally have up to four months to process the claim and make a decision.

For Non-EU Based Companies:

Non-EU companies can reclaim VAT paid in Portugal under the 13th VAT Directive (86/560/EEC). The process involves direct application to the Portuguese tax authorities. Here are the steps:

1. Determine Eligibility:

Confirm that your home country has a reciprocal agreement with Portugal for VAT refunds. This is essential for the refund to be processed.

2. Prepare Documentation:

Gather all required documentation, including original invoices, proof of payment, a certificate of tax status from your home country’s tax authority, and possibly a power of attorney if using a tax representative.

3. Submit the Application:

The application must be submitted directly to the Portuguese tax authorities. You can either mail the documents or use a Portuguese VAT refund agent to assist with the process.

4. Application Form:

Complete the application form available from the Portuguese tax authorities. The form requires details about the company, the nature of the expenses, and the amount of VAT being claimed.

5. Deadline:

The deadline for submitting the application is typically June 30 of the year following the year in which the VAT was incurred. For example, for VAT paid in 2023, the application must be submitted by June 30, 2024.

6. Processing Time:

The Portuguese tax authorities usually have six months to process the claim once all required documentation has been received. They may request additional information during this period.

Additional comments:

Language: The application and documentation may need to be provided in Portuguese or with a certified translation.

Refund Agent: Consider using a VAT refund service or tax representative, especially for non-EU companies, to navigate the process smoothly.

Compliance: Ensure all invoices comply with Portuguese VAT regulations, including showing the VAT amount separately.

Useful Contact Information:

For direct submissions and further details, you can contact the Portuguese tax authority:

Autoridade Tributária e Aduaneira (AT)

– Website: [Autoridade Tributária e Aduaneira](https://www.portaldasfinancas.gov.pt)

– Address: Av. Engenheiro Duarte Pacheco, 28, 1099-013 Lisboa, Portugal

– Phone: +351 21 761 00 00

VAT regulations and local regulations are subject to change. This article has been prepared as a guide as to why VAT is charged by WYSE Travel Confederation on conference registrations and how it can be claimed back. WYSE cannot take responsibility for the accuracy of this article due to the aforementioned potential changes and we recommend that you use the services of a Refund Agent or Tax Service to provide you with up to date advice and to process your claim.