01 Oct Spain VAT Free – DMC invoice without VAT
As of January 2015, new tax regulations in Spain made it possible for a Spanish DMC, like Protocol DMC SPAIN, 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.
In order for Protocol (a registered & qualified incoming agent in Spain) to be able to invoice without VAT, we need to demonstrate to Spanish Tax Authorities that your event is a B2B transaction involving a ‘complex organizational service’ which, covers the majority of events that require services such as accommodation, transfers, meeting space, A/V equipment and off site venues/dining.”
The new legislation goes further than the provisions of the Reverse Charge Mechanism, the system by which clients based in European Community (EC) countries can have some elements of their event invoiced without the addition of VAT for projects operated within the
New legislation extends the circumstances in which Spanish DMCs are able to invoice without the addition of VAT.
This is excellent news for the event industry in Spain. No longer do clients need to go through the time consuming and lengthy process of reclaiming VAT from the Spanish government – we can now simply invoice clients directly at 0% VAT. This is a significant saving of 10 per cent and 21 per cent according to the goods or services supplied.