As a general rule, it is not required to set up a legal entity in Belgium for the sole purpose of organising an event in the country, either on a temporary or long-term basis.
However, it might be necessary and/or advisable to set up a legal entity for tax or VAT reasons.
See also section on VAT
Organising an Event in Brussels
1. Is it required to set up a Belgian legal entity for the organisation of an event in Belgium?
2. Is it required to set up a Belgian legal entity or a partnership if the event is organised together with partners or other organisations?
When there is a cooperation between different entities in the framework of the organisation of an event, it is always advisable to conclude an agreement that defines the rights and obligations of all parties. This could be either done by contract (for example, a partnership agreement) or by setting up a specific legal entity in Belgium or elsewhere.
The decision on the type of arrangement that is best suited depends on the type of event(s) and the type of cooperation envisaged among the members of the partnership.
The benefit of setting up an entity for a temporary, short-term duration must be assessed from a legal and an accounting point of view.
3. Is it required to request special authorisations / licences for the organisation of an event?
Authorisations and licences may be required for the organisation of an event depending on the type of event, its location, the target audience and many other factors.
The list below contains some examples of authorisations or permits that may be required, however it is not exhaustive. Authorisations, licences or permits required should be carefully checked before the organisation of every event.
- If it is planned to play music, project a film, play performed or work of art reproduced, then it might be necessary to obtain a licence from Unisono, which is the platform created by the management associations of authors, musicians and artists to protect their rights, and which provides valid licences to customers. Additional information about Unisono licences can be found here: https://www.unisono.be/en/licences/music/events.
- If the event venue is an area open to the general public (such as a square or a park) it is usually required to obtain a prior authorisation from the relevant municipality in order to hold the event.
- Municipalities may also apply specific rules. For example, it may be forbidden to use some specific plastic products; the municipality may limit the maximum number of decibels that cannot be exceeded; there may be specific rules applicable as to the accessibility to the event for people with reduced mobility or emergency services might have to be informed, etc.
In addition to the above, event organisers should bear in mind that currently COVID-19 specific measures might apply and that, in addition to national measures, the city of Brussels has adopted, and may adopt in the future, specific rules (see our covid info page and https://www.bruxelles.be/coronavirus). Moreover, each of the 19 municipalities of Brussels may take additional measures.
4. How can event organisers ensure that their event is GDPR compliant?
Regardless of whether an organisation that is organising an event in Belgium is established inside or outside the European Union (EU), it will certainly have to process personal data (such as name, email, address, phone numbers, etc.) of participants based within the EU; and as such, it will have to comply with the General Data Protection Regulation (GDPR) rules.
During the preparation of such event, specific attention needs to be paid to the following points:
- Event organisers should obtain explicit consent from participants to use their personal data in the scope of the organisation of the event: when registering to the event, the participants explicitly consent to the use of their data and have an option to opt-out for their ultimate use. This is usually done directly via the online platform where registration takes place. It is recommended that participants are asked to approve explicitly the following:
- Whether or not they wish their name to appear on the list of attendees;
- Whether they authorise to receive marketing material after the event from the event organiser;
- Whether the event organiser can share their data with third parties who may send them marketing materials or newsletters, etc.;
- Whether the event organiser can use pictures taken during the event on which participants can be identified.
- In their communication to participants, event organisers should always refer to their privacy policy: this general privacy policy explains to the individuals what data is being collected on them, how that data is being used and stored. It should be made available on the event organisers’ website.
- Event organisers should ensure that third parties (such as communication consultant, catering supplier, IT supplier, co-organiser) who will be involved in the organisation of their event and who will have access to the personal data of the participants, also comply with the GDPR rules at the same level of security and confidentiality. A specific addendum might be added to the contracts with them, with a high level of attention in case they are based outside the Economic European Area (i.e. the EU countries and Iceland, Liechtenstein, Norway), in particular the USA or the UK.
In general, event organisers need to ensure that their staff (employees or freelancers) are always aware of the GDPR rules when handling personal data in the course of the organisation of an event.
5. What information should event organisers communicate to participants?
With the exception of the GDPR rules (see question on GDPR compliance), there are no specific legal obligations or mandatory provisions establishing what information must be supplied to the participants.
However, as a general rule, the contract that an event organiser concludes with its participants must allow them to have a clear understanding of what is included or excluded in the participation price they pay. The following elements are usually communicated to (and approved by) the participants:
- Dates and location of the event;
- What is included in the price of the ticket, i.e. the event only or also meals, accommodation or other;
- Terms upon which the event organiser may cancel the event and the consequences for the participants;
- Whether, in case of cancellation, the event organiser refunds the price of the ticket or if such amount may be used by the participant for subsequent events;
- Terms and conditions of cancellation by the participants.
6. What information should event organisers communicate to sponsors?
The contract that the event organiser concludes with the sponsor is, in general, a B2B contract. In fact, sponsors of events are generally legal entities.
In light of the above, the parties are free to agree on the terms and conditions of their choice and are not bound by mandatory rules in that respect.
Information that is usually included in the agreement with the sponsors includes the following:
- A clear description of what the sponsors obtain as a service following the payment of the sponsorship fee. Such services may include the indication of the name of the sponsor on the advertising material or on the relevant website of the event organiser, but also the possibility for the sponsor to have one or more of its employees speaking at the event or gadgets with the name of the sponsor distributed at the relevant event. The object of the sponsorship and what the organiser offers to the sponsor must be clearly identified.
- Clauses regulating the consequences of the cancellation of the event by the event organiser should be included.
- The contract should also indicate clearly if the sponsor may cancel its sponsorship or not, and what will be the consequences in case of cancellation of the sponsorship.
7. What should event organisers consider when negotiating with service providers? What points are important for the terms of service?
Agreements concluded between the event organiser and service providers, such as the hotel, venue or other suppliers, are usually B2B agreements, and therefore the parties are largely free to determine the content of their agreement.
Event organisers should however be aware that hotels and venues often have ‘standard’ agreements that they use for events organised at their premises. It should be noted that while these documents are the ‘standard’ for the relevant hotel or venue, there exists no standard or mandatory type of agreement in Belgium. It is recommended to always refer to the legal responsible of the hotel or venue when clarifying the terms and conditions applicable to the contract.
In addition to having a clear agreement on the price and the description of the services themselves, it is important to make sure that the following aspects are covered in the contract:
- The contract should indicate who will be responsible in case of an accident (e.g. a participant falls in the hotel stairs; the caterer causes bodily injures to a guest while serving food to which s/he was informed to be allergic; etc.). Most of the times, these liabilities lie with the hotel, venue or service provider. It is important to verify that they are covered by appropriate insurance covering their liability. The event organiser may want to ask to receive an insurance certificate as evidence thereof.
It is fundamental that the relevant supplier (venue, hotel, catering company, etc.) represents and warrants that they hold all necessary licences and authorisations to perform their work. - Should the service provider process personal data on behalf of the event organiser, specific GDPR related protection clauses should be added to the relevant agreement.
Please note that the list above is a generic list and that each event is different. Therefore, additional clauses will most likely need to be added in relation to each specific event, venue, hotel or type of supplier.
8. In case of cancellation, can an event organiser absolve him/herself from the responsibility towards event participants and service providers? If so, for which risks can this be done?
Yes, the event organiser may limit his/her liability in case of cancellation by regulating this in the relevant contract concluded with the participants (delegates, sponsors, exhibitors) or with service providers (venue, hotel, suppliers).
The limitation of liability in case of cancellation must be very clear in order for it to be properly enforceable. It may cover different elements – see here below a list of the main elements that may be included in such a clause:
- The reasons for which an event may be cancelled. The event organiser may provide here what suits best for the respective event (e.g. that the event may be cancelled for whatever reason, or that it may be cancelled if a minimum number of participants is not attained, or only in case of force majeure, or in case of COVID-19 related measures, etc.). It is recommended to be as specific as possible.
- What rights the participants, sponsors, venues, hotels or other third parties will have in case of cancellation of the event. In this respect, what is included in this clause is largely the result of contractual negotiations, as well as the event organisers’ needs.
- If the third party involved is a participant, sponsor or exhibitor, the event organiser may provide for instance that the relevant party will only receive a reimbursement of its fee and that the event organiser will not be liable for any additional damages or costs (e.g. costs of accommodation) of the relevant party.
- For participants, sponsors or exhibitors the event organiser may provide that, instead of reimbursing the participation fee, it offers a credit to participate in future events.
- If the third party is the hotel or venue, it is often the case that the hotel or venue provides that penalties must be paid (or even the full agreed amount) if the event organiser cancels the event (fully, i.e. the event not taking place anymore, or partially, i.e. reducing space since the event is taking place with reduced number of participants). Those clauses could be negotiated in order to avoid having to pay the full amount in case of a partial and/or full cancellation.
9. What is “force majeure” and when does it apply?
Under Belgian law, the force majeure is usually defined as an external event or circumstance occurring beyond any reasonable control of the parties, which cannot be avoided, and which allows the parties to suspend or cancel the execution of their contractual obligations.
In order to be considered as force majeure, therefore, an event cannot be caused by the fault of one party, and such event must render the performance of the relevant obligation (e.g. the holding of the relevant event) impossible. A simple increased difficulty in the organisation of the event is not considered, under Belgian law, as an event of force majeure.
It is apparent that the notion of force majeure under Belgian law is very strict. For example, the fact that participants must take a COVID-19 test, or must respect a quarantine when travelling to the event location is not considered a force majeure event. On the other hand, it would be force majeure if the participants are not allowed to travel to the country where the event is organised.
However, parties may contractually agree on a definition of force majeure that suits their needs best. For example, they may better describe what is considered as a force majeure and include pandemics, terrorist attacks, strikes, demonstrations, problems with suppliers and all sort of additional elements that they may agree upon between them.
If an event organiser wishes the clause to apply to the specific COVID-19 situation, it is always advisable to provide this clearly in the definition of the force majeure.
10. How can “force majeure” be invoked?
In case a force majeure event occurs, the terms in the agreement need to be verified and the other party notified accordingly. The notification needs to be made in accordance with the contractual terms. All steps taken in the process should be well documented.
11. In case of a dispute within the framework of the organisation of an event, which law would be applicable and to which jurisdiction?
As a general rule and subject to some exceptions, the law applicable to a contractual dispute depends on the law applicable to the relevant contract. Therefore, depending on the law applicable to the contract, that would be Belgian law or the law of another country.
For example, it is highly likely that, if the event organiser is located in another country, the general terms and conditions indicate that the law applicable to contracts concluded with the organising entity is the law of that country. Contracts concluded with the hotel or venue or other suppliers based in Belgium will most likely be subject to Belgian law.
As regards the competent court to decide a dispute, this is usually contractually chosen in the framework of the relevant contract. In the absence of choice, for contractual matters it will be the courts of the place of performance of the obligation in question that will be competent, or, in the case of the provision of services, it will be the courts of the place where the services were provided or should have been provided.
12. In which language/s would proceedings be held if a dispute was brought to court in Belgium?
Should proceedings be brought against an event organiser in Belgium, the competent court will be determined on the basis of applicable rules of civil procedures.
The language used would depend on the competent court: proceedings before the Brussels’ courts may be held in French or Dutch; if the court is located in Flanders, the language of the proceeding will be Dutch; if the court is located in Wallonia, then the language will be French, and in the German speaking part of Belgium, court proceedings are held in German.
1. Is it compulsory to insure an event?
No, it is not compulsory to insure an event. However, event organisers are highly recommended to subscribe to one-off insurances, such as event cancellation insurance and event liability insurance.
2. What kind of one-off insurances should event organisers subscribe to in order to cover their event, and what do they (not) cover?
Event organisers are highly recommended to subscribe to one-off insurances, such as event cancellation insurance and event liability insurance.
2.1. Event Cancellation Insurance
The insurance company shall indemnify event organisers for their net loss (up to the limit of indemnity agreed in the contract, based on the event revenues or costs) arising from the necessary cancellation, abandonment, postponement, interruption, curtailment or relocation of the event resulting solely and directly from any cause not otherwise excluded which occurs during the policy period and which is beyond the control of both the organisers and any participant (e.g. a fire or a power outage at the venue).
Excluded causes are typically the following: communicable disease (including COVID-19), chemical or biological attack, contractual breach, criminal acts, financial causes, fraud, negligent conduct, etc.
However, bespoke insurance extensions for some excluded causes such as non-appearance, terrorism (act or threat), adverse weather (for outdoor events), civil unrest, cyber incidents or acts, etc., can be obtained against additional premiums. Seeing that more and more events are now ‘virtual’, specific stream or transmission covers for technical issues can be added as well.
Prior to the event, organisers can seek to contact a specialised insurance broker in order to make a full risk assessment based on the type of event, the location, the type of venue, etc.
2.2. Event Liability Insurance
Event liability insurance should be taken out to cover third party liability against bodily injury or property damage.
Other one-off insurances that event organisers can subscribe to in order to cover their event are the following:
2.3. Personal Accident Insurance
Personal accident insurance is a collective insurance taken out by the event organiser to cover participants’ bodily injuries.
2.4. Specific Equipment Insurance
Specific equipment insurance should be taken out to cover material damages.
2.5. Weather Insurance
Weather insurance will offer bespoke insurance solutions, protecting against the occurrence of defined weather perils for a predetermined period and location (ex: loss of audience/ticket sales due to the rain for an outdoor event/concert).
3. What is the approximate cost of one-off event insurances?
Event cancellation insurance would cost between 1 and 3% of the insured amount (event budget/revenues or costs only).
Event liability insurance would cost between EUR 500 and 2.500, depending on the limits needed.
4. Are the participants, sponsors, exhibitors and suppliers of an event covered through an event insurance?
Normally the participants, sponsors, exhibitors and suppliers of an event are not covered through an event insurance. However, this would have to be investigated case-by-case, as it will depend on the terms and conditions of the event.
5. How can an event organiser best advise event participants and service providers to take out their own insurance and protection?
Event organisers should inform participants (delegates, sponsors, exhibitors) and service providers (venue, hotels and suppliers) via the contracts (via a waiver of subrogation) or via the terms and conditions (ticketing).
6. Which insurance coverage is mandatory for the venue, hotels and suppliers of an event in Brussels?
In Belgium, places/venues that are open to the public need an ‘objective liability insurance for fire and explosion’. Hotels/venues must have this on a yearly basis. They also require a general liability insurance.
7. Is it compulsory to take legal protection for the organisation of an event in Brussels?
It is not compulsory to take legal protection, but it can be useful. Part of legal protection can also be covered by the one-off event liability insurance.
8. What kind of annual insurances are professional event organisers recommended to subscribe to?
Professional event organisers are highly recommended to subscribe to the following annual insurances:
- General public liability insurance, to cover for bodily injury or property damage
- Legal protection insurance, to cover for extra legal expenses
- Professional liability insurance, to cover for errors and omissions
- Employers liability insurance
- Cyber & data risks insurance (GDPR liability, ransomware, assistance)
9. Is it better to be covered through an insurance company in the event organiser’s home country or in Belgium?
While location is not relevant, it is recommended to seek coverage via a specialised insurance company, since they typically offer the best coverage conditions.
1. When is an event held in Belgium subject to Belgian 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.
2. When is the income generated from event registrations subject to 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’.
3. When is the income generated from event sponsorship subject to VAT?
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.
4. How can foreign event organisers recover Belgian input VAT? Which steps need to be taken?
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.
1. Are transfers of the accounts taxable?
Transfers of the accounts are not taxable when they occur within the same legal entity. If transfers are made from one Belgian entity to another legal entity or physical person (e.g. a shareholder or a group company), the transfers may be subject to withholding tax in Belgium (e.g. on dividend or interest or royalty payments).
2. Are the benefits made through an event taxable in Belgium and in what context?
The benefits made through an event are taxable in Belgium to the extent that a permanent establishment is deemed to exist in Belgium.
A permanent establishment will in any case be deemed to exist where the organiser of an event is structured by ways of a Belgian legal entity.
In case a Belgian legal entity that is subject to corporate income tax is organising an event in Belgium, the profits generated through the event will be taxable in Belgium and in principle be subject to tax at the statutory corporate income tax rate of 25%.
In case a Belgian non-profit organisation that is subject to legal entity tax in Belgium is organising an event in Belgium, any profits generated through the event should not be taxable under the legal entity tax, unless the legal entity receives income from real estate (e.g. rental income) or movable income, such as interest or dividend income, on which 30% withholding tax is due.
In general, Belgian entities in the event sector (e.g. organisers of music festivals, catering companies, stage builders, etc.) are subject to corporate income tax rather than legal entity tax, even if they operate under the legal form of a non-profit-organisation (vzw/asbl).
Furthermore, when a foreign entity or physical person organises an event in Belgium, a taxable permanent establishment may exist in Belgium under certain circumstances. This will depend amongst others on the type of activities carried out in Belgium, the duration, and the double tax treaty concluded between the resident country and Belgium. To the extent a taxable permanent establishment exists in Belgium, the net profits generated through the permanent establishment will be taxable at the statutory corporate income tax rate of 25%. A tax credit will, in principle, be granted in the resident state.
3. Should a tax expert be hired in Belgium or abroad?
When organising a paying or sponsored event in Belgium, it is recommended to seek advice from a Belgian tax expert. If the event does not generate revenue, it is usually not necessary.
4. Where and how should the financial statement/tax declaration and the closing of the accounts of an event be made and what are the different cases?
In case a Belgian legal entity is used, the financial statements should be filed according to Belgian legislation, based on amongst others the size of the entity and the closing of the financial year.
A corporate income tax return or legal entities tax return will be due, in principle, within 6 months after closing of the financial year. The exact dates are communicated each year by the Belgian tax authorities.
5. How can the account balance (i.e. the profits) be recovered?
In case a company is used, profits can be recovered through dividend distributions towards the shareholder.
In case a non-profit-organisation or a company with social purpose is organising an event, the profits realised should not be recovered, but should be used to realise the social purpose of the entity and to organise future events in the framework of the social purpose.
6. How and where should the transfer be reported?
In case of a Belgian company, the transfer of funds (dividend distribution) should be decided by the board of directors of the company, considering the regulations of Belgian company law. The transfer should be reported in the annual accounts.
In certain cases, withholding tax forms and exemption forms need to be filed.
Dividend distributions should be reported in the corporate income tax return.
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