VAT

The admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events, such as fairs and exhibitions, are taxable where those events actually take place. So whenever such an event takes place in Belgium, Belgian VAT will be due, regardless of the country of registration of the event organiser.

The only possible exception would be when the event can be regarded as a fundraising event organised by a non-profit association of which the activities are exempt of VAT, and the revenue is exclusively intended for the own benefit of the association. In that case, the event income will be exempt of VAT.

The foreign event organiser will need to charge Belgian VAT on the price for ‘the admission to the event’, irrespective of the capacity of the participant. If however the participant is a Belgian VAT taxable person or a foreign VAT taxable person with an individual Belgian fiscal representative, the domestic reverse charge mechanism will apply and no VAT needs to be charged by the foreign organiser.

Belgian event organisers cannot use the domestic reverse charge mechanism and will always have to charge Belgian VAT on the price for ‘the admission to the event’.

Sponsorship deals normally qualify as publicity services, since in return for the sponsorship income some form of publicity is provided by the event organiser. In that case, the sponsorship income is subject to VAT.

The foreign organiser will in principle not have to charge VAT on its invoice, unless the sponsor is established in the same country as the organiser himself (at least when it concerns EU countries; non-EU organisers will have to consider the rules of their country).

For example, a Belgian event organiser will have to charge Belgian VAT to a Belgian sponsor, but will have to invoice without VAT to foreign sponsors in other EU countries (“reverse charge of VAT” to EU sponsors, and “place of taxation outside the EU” for non-EU sponsors).

In case also other services or goods are offered as part of the sponsorship deal, the VAT treatment will be determined based on the nature of the services or goods offered (example: a number of entrance tickets are given in return).

If no services or goods are offered in return for receiving sponsorship, i.e. the sponsor gives a certain amount and expects nothing in return, the sponsorship income will not be subject to VAT (out-of-scope).

Should the foreign organiser also re-invoice the letting of exhibition or fair space (and ancillary services), this will in most cases be subject to Belgian VAT which requires a Belgian VAT registration. It is recommended to carefully verify the letting agreement to determine the correct VAT treatment.

Whenever Belgian VAT needs to be charged by the event organiser, a Belgian VAT registration will be required. Any Belgian input VAT incurred in relation to organising the event can be recovered through the VAT return that will need to be filed.

Note that there is a simplified VAT registration possible for event organisers who organise events in Belgium only once or very sporadically. Under this simplified VAT registration, only one VAT return must be filed after the event has taken place.

To obtain a VAT registration, the necessary forms and information must be submitted to the Belgian VAT authorities before invoicing of the participants has started (i.e. before any Belgian VAT becomes due). The competent VAT office for foreign organisers is “Centrum Buitenland – beheer team 1 (foreigners.team1@minfin.fed.be)”.

In the exceptional situation where no VAT registration is required (i.e. all participants are Belgian VAT taxable persons), input VAT can be recovered by introducing a VAT refund claim.
If the admission to the event would be exempt of VAT, no input VAT can be recovered.

Finally, it is to be noted that associations can entirely outsource the organisation of their event to an event agency. In this case all invoices - to delegates and sponsors, and from suppliers - will be in the name of the event agency. The association would only pay a fee to the event agency for organising the event, and receive the revenue generated from the event afterwards from the event agency, without needing to undergo a VAT registration.