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V2220-18 25 July 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Event organisation is subject to VAT if the recipient is based or established in Spain

An event management company has enquired whether organising a concert and dinner for a foreign entity is subject to VAT. The DGT has ruled that taxability depends on the location of the recipient and whether the services involve access to the event.

The question raised

Subjectivity of said service provisions to Value Added Tax.

The DGT's ruling

The organization of events is considered a single service. If the recipient is an entrepreneur or professional, the service is subject to VAT in Spain if they have their registered office, permanent establishment, or domicile in Spanish territory. If the recipient is not established in Spain, the organization is not subject to the tax, unless the client does not act as an entrepreneur, in which case the rule for services materially provided in Spain applies. On the other hand, services for access to cultural manifestations or events are considered to be performed in Spain regardless of whether the attendee is an entrepreneur or a final consumer.

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