Event businesses are being urged not to follow the Government’s example and overlook VAT costs after its budget for hosting the Olympics had to be revised upwards to £9.3bn.
VAT specialists Accordance’s Head of Consulting, Andy Spencer says: “Businesses should be careful not to fall into the same trap as the UK Government when it comes to VAT. VAT is one of the first taxes that most businesses will encounter when trading cross-border, but it is also one of the most overlooked.”
Spencer claims that in the run up to, and during the London 2012 Olympics, events and conferences will rise, with many hospitality events and business conferences trying to showcase the lucrative investment opportunities the UK has to offer. “Events are one major area where VAT must be on a business owner’s mind, because they often create liabilities earlier than some other transactions,” he adds.
The place of supply differs from the norm where events are concerned, in so far as admission to events for business customer are subject to VAT in the country where the event takes place.
“Organisers will need to review EU VAT registrations, as the need to be VAT registered depends on the services supplied in each country, with supplies of stand rental being an area where there is a difference of interpretation between member states,” says Spencer.
“This is an exciting time to be doing business in the UK and there are many opportunities on offer surrounding London 2012, but it is important to check where you stand in terms of VAT and make dealing with it a priority,” he adds.
Do you have a news story for CN? Email: email@example.com