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V1215-20 4 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio único

Event organisation for EU businesses is not subject to VAT if the client is not resident in Spain

An event management company has requested clarification on whether its services (comprising catering, transport, and accommodation) billed at a single price to EU-based business clients are subject to VAT. The DGT has ruled that event organisation constitutes a single service and, as the client is a business not established in Spain, the transaction is not subject to VAT.

The question raised

Liability for Value Added Tax regarding said services, invoiced at a single price to their clients, who are businesses established in Community countries.

The DGT's ruling

The organization of events constitutes a single service composed of a plurality of closely linked elements that form an indissociable economic provision. Ancillary services such as catering or transport are not taxed independently, but rather follow the regime of the principal operation. If the recipient is a businessperson or professional not established in the territory of application of the Tax, the provision of this single service shall not be subject to VAT pursuant to Article 69.One.1º of Law 37/1992.

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