VAT refunds on event cancellations
COVID-19 has caused unprecedented disruption, postponements and cancellations in the events sector. Event organisers are being heavily hit economically on the back of this. In order to mitigate the economic consequences, organisers may be able to alleviate the financial burden by efficiently managing an important cost factor – Value Added Tax (VAT).
VAT refund possibilities on cancelled events
National VAT legislation in each EU Member States is based on the EU VAT Directive, but this does not mean it is treated in a similar way across the various EU Member States.
Taxback International can help companies to navigate the complexities of reclaiming VAT on their cancelled or postponed events and trade shows, from dealing with revenue lost due to refunds on tickets for no-shows during the early stage of the pandemic to event postponements and even complete cancellations:
- If VAT has been applied on the entrance ticket, the VAT refund possibilities of an event organizer very much depend on the specific situation and should be reviewed on a case by case basis.
- If VAT has been correctly charged, it can be reclaimed via a Foreign VAT refund.
- If VAT has been incorrectly charged, it can be reclaimed via supplier crediting the VAT.
We can support you
Taxback International can support event organisers, delegates and businesses with specialized consultancy on how to handle foreign VAT on cancelled/rescheduled events and the respective filings in all jurisdictions.
Given the unprecedented situation, it is up to each individual Member State to review the possibilities for event organisers outside the scope of the current VAT rules to grant individual VAT relief or exceptions. Taxback International will monitor the communications from all tax offices both in the EU and globally.