As of January 2015, new tax regulations in Spain make it possible for a Spanish DMC, like events by tlc, to invoice without VAT. Most events that are business related, including a number of services and booked entirely through us, can be invoiced without VAT.
What´s the benefit for my company?
The Spanish VAT rates are 10% and 21%, which means that deducting this percentage from the prices implies a huge cost reduction for the customer, so booking your event through events by tlc is definitely worthwhile.
This new law will give a huge advantage to those clients booking all services via a DMC, as they will get prices with 0% VAT.
If the client books everything via the DMC the event becomes a SCOE: the DMC will invoice with 0% VAT taxes.
Remember: on top of that, events by tlc has very special rate agreements with the best hotels in the country thanks to their long and strong relationships and volume they bring the hotels..
How do we qualify?
For us to be able to invoice without VAT we need to demonstrate your event is a business related event involving a ‘complex organizational service’ (SCOE). This covers nearly all events that include accommodation, meeting spaces, transfers and restaurants.
With this new legislation it will become easier and as well more cost effective to book all the required services via a local DMC as it will not be necessary to start a tax rebate process as the DMC will be able to invoice net rates with 0% VAT.
This is possible within the EU but as well when invoicing to countries where the taxes where nonrefundable due to the lack of bilateral agreements.
Moreover in order for us to be able to invoice your company without VAT you must also be registered in VIES program. To check wether your company is registetered and if not, to find out more about applying please visit the following website:
Why is it important to work with events by tlc, your trusted destination specialist partner?
Of course, the VAT does not vanish into the air. The DMC pays the VAT to the varied suppliers and then claims it back from the Tax Authority, which of course may take for a while. So now, more than ever it is important to work with a financially solid DMC.