As of 1 January 2025, significant changes affect the VAT treatment of event organization in the EU. While the place-of-supply rules for in-person events remain unchanged, online events—such as webinars, virtual conferences, and digital exhibitions—are now taxed where the participants are established. This applies whether the participants are businesses or private individuals.
For event organizers, this adjustment means a new layer of complexity, as non-compliance with VAT registration or reporting obligations can result in penalties.
In-Person vs. Online Events
- In-person events: VAT continues to be payable in the country where the event physically takes place.
- Online events: From 2025, VAT must be accounted for in the Member State where participants are based, not where the organizer operates.
This shift requires many organizers to consider VAT registration abroad.
Key Questions for Event VAT Compliance
- Are tickets being sold?
VAT rules hinge on whether admission is charged. Business meetings or internal company events without ticket sales typically fall outside this scope. - Are packages offered?
Some organizers provide bundled services (entry tickets, accommodation, catering, travel, booth rental, equipment). These can trigger local invoicing obligations and affect VAT recovery options. - Who is the customer?
The VAT treatment depends on whether the buyer is a business or a private person, and whether they are based domestically, in another EU Member State, or outside the EU. - Is VAT deductible?
Input VAT on costs may be:- non-deductible,
- only partly deductible, or
- fully deductible, depending on local rules.
When Is a Foreign VAT ID Required?
A local VAT registration may be necessary if:
- Tickets are sold to businesses or individuals abroad (B2B or B2C).
- Other taxable supplies are made in the host country.
- The organizer incurs local costs subject to VAT.
- The event involves property-related services.
If registration is required, organizers must comply with local VAT rates, invoicing rules, reporting obligations, and possibly real-time data reporting systems similar to Hungary’s. The process of obtaining a VAT number varies across Member States and can take weeks or months.
Online Events: The Big Change
For online events, the place of supply is now where the customer resides or is established. This creates new foreign VAT registration obligations for cross-border online conferences, workshops, or cultural events. In some cases, the OSS (One-Stop Shop) scheme may allow organizers to report VAT without registering in multiple Member States—but only for B2C sales.
Avoiding Registration: When Is It Possible?
Organizers may sometimes avoid local registration by using the OSS scheme or by reclaiming foreign VAT via refund procedures (such as through Hungary’s ELEKÁFA). Still, in many cases, registration is mandatory and must be evaluated before ticket sales begin, to ensure invoices are issued under the correct VAT number.
Practical Challenges
Foreign VAT registration and compliance often involve:
- Different documentation and registration processes per country,
- Divergent reporting deadlines and frequencies,
- Varied treatment of ticket sales (including reverse charge in some B2B cases),
- Communication with foreign tax authorities and local service providers.
Conclusion
The 2025 rules significantly reshape VAT obligations for event organizers. With online events now taxed where participants are located, companies must carefully assess their obligations, registration needs, and compliance procedures across multiple jurisdictions. Early preparation is key to avoiding penalties and ensuring smooth operations.
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