Corporate events are an important tool for companies seeking to build relationships and connections with their customers, suppliers and partners. However, these events can come at a high price and affect the company's budget, so it is important to be aware of the tax details that apply in Spain to maximise the benefits.
One of the fiscal aspects in Spain that you need to be aware of if you are holding a corporate event here is the tax exemption. Value Added Tax (VAT) is a tax levied in many countries, including Spain, on the consumption of goods and services. However, there are certain exceptions in Spanish tax law that affect foreign companies holding events on Spanish territory. For example, one such exemption is stipulated in Law 37/1992 of 28 December 1992 on Value Added Tax, which states that companies based outside Spain but within the European Union may be exempt from paying VAT. In this article, we will examine the details of this law and how it affects foreign companies organising events in Spain.
Hold your event in Spain without having to pay VAT
Value Added Tax Law 37/1992
Law 37/1992 on Value Added Tax is the law that regulates this tax in Spain. It was enacted on 28 December 1992 and establishes the obligations, rights and regulations for VAT taxpayers in Spain. This law establishes the tax rates, the procedures for declaring and paying the tax, as well as exemptions. applicable to certain sectors and activities.
VAT exemption for EU companies holding events in Spain
In Spain, EU companies that decide to hold their event in the country can benefit from tax exemption on the organisation of the event. This measure can offer great advantages for companies looking to reduce the cost of producing and organising their event in Spain.
As we have already mentioned, one of the most relevant exemptions established in Law 37/1992 on VAT is the one that affects European Union companies that organise events in Spanish territory. According to this law, companies based outside Spain but located within the European Union may be exempt from paying VAT. This means that these companies are not obliged to pay VAT on the invoices issued for the services or products related to the realisation of the event, nor are they obliged to pay it into the State's coffers.
Conditions for VAT exemption for events in Spain
VAT Law 37/1992 establishes certain conditions that must be fulfilled in order for a foreign company to be exempt from paying VAT in connection with the organisation of an event in Spain. Some of the main conditions are as follows:
- The foreign company must be established outside Spain but within the European Union: In order to qualify for the VAT exemption, the company organising the event must be based or resident for tax purposes outside Spain. This means that companies based in Spain will not be able to benefit from this exemption.
- The foreign company must be registered in the Register of Intra-Community Operators (ROI): In order to qualify for VAT exemption, the foreign company must be registered in the ROI, which is an administrative register that collects information on economic operators carrying out intra-Community VAT transactions.
VAT exemption in Spain for companies from outside the European Union that want to hold their event in Spain.
In Spain, non-EU businesses can benefit from VAT exemption in certain operations and services related to their business activity. This measure can be of great advantage to foreign companies doing business in Spain.
The non-taxation of VAT is applies to those companies that do not have a presence or permanent establishment in Spanish territory, and therefore are not obliged to be registered in the Register of Intra-Community Operators (ROI).
In short, knowing the tax particularities that apply in Spain is a great opportunity for foreign companies looking to organise their corporate events in Spain. By taking advantage of the tax exemption or non-taxable status, companies can reduce the price of their events, increasing their return on investment. Don't miss the opportunity to maximise your profits and take advantage of the new tax breaks in Spain for corporate events!
