In December 2015 Italian Agenzia delle Entrate pointed out that, from VAT viewpoint, the arrangement of events, meetings, conventions, conferences etc. falls under the special …
In December 2015 Italian Agenzia delle Entrate pointed out that, from VAT viewpoint, the arrangement of events, meetings, conventions, conferences etc. falls under the special VAT scheme for travel agents laid down in arts. 306-310 of the VAT Directive. Such a direction is totally new since previous instructions just confirmed that the usual VAT regime had to be enforced.
Agenzia delle Entrate memo has not been officially published yet, as it “only” stands as an answer to a specific query (raised by a VAT payer); first press comments, however, point out risks of distortion of competition, both on domestic ground (VAT would not represent a cost only in case the event/convention/conference was internally arranged, while it would be a cost with regard to similar services arranged and invoiced by a third company) and between EU M.S.
More precisely, Agenzia delle Entrate maintains that the event/convention arrangement has to be regarded as a single service related to a tourist package; hence, it is liable to the VAT margin scheme (provided that it is made within the EU for an overall consideration). Therefore, as per art. 307, par 2, it is taxable in the M.S. in which the organizer has established his business.
Concerning this, Agenzia delle Entrate underlines that margin scheme is to be applied not only by travel agencies or tour operators, but also by other companies performing activities like those made by T.O. (C.J. CE, C-200/04).
Last but not least, Agenzia delle Entrate memo points out that as from 2008 art. 74-ter, par. 8-bis of Italian VAT Decree would allow T.O. to opt for the enforcement of the usual VAT regime. Such an option, however, requires an E.U. preliminary authorization, which has never been given by the Commission.
dott. Alessandro Garzon
