Barcelona has hosted once more the Mobile World Congress with great success of attendees from many countries all over the Globe.
In addition to the many economic benefits of a venue like this one as well as of many others taking place in our country, we remind you today how taxation also plays a role in this type of events.
✔ As of Jan. 01, 2011, services consisting of trade fairs organization are located in the Spanish VAT territory when they are rendered in such territory and the consumer of such services is not a VAT taxpayer.
When such services are provided to a person or entity qualifying as a VAT taxpayer (a B2B transaction), then the transaction is deemed to take place at the location of the domicile of the addressee of the service.
✔ The practical application of this rule implies that the different services provided in a trade fair organization (such as providing for a stand location, translation or cleaning services…), that are generally regarded as a single VAT transaction, are subject to Spanish VAT when they are supplied to a Spanish VAT taxpayer but not to an entity not domiciled or residing in Spain but in the EU, for example.
✔ The access to trade fairs taking place in Spain follows a specific rule and is subject to Spanish VAT when such events take place in the Spanish VAT territory.