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A local council enquired whether organising a trade and craft fair, where participants are charged a fee, is subject to VAT. The DGT ruled that, due to its commercial nature, the activity is subject to the tax.
Question raised: Liability for Value Added Tax regarding the consulted activity.
The operation of trade fairs and exhibitions by Public Administrations is always subject to VAT. The organizer is the party who coordinates the material and human resources for the holding of the event. If the fair is commercial, the services provided by the City Council to participants and visitors are subject to the tax. A tax rate of 10% applies to these services.
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