With further investment in Asia and a thriving business in emerging...
Tax officials relax VAT charges for foreign exhibitors
posted on: 9/8/2012 13:19:04
The Association of Event Organisers (AEO) and leading figures in the industry have welcomed news that the European Policy Committee has changed its instructions on the classification of exhibition stands.
The AEO learned from Her Majesty's Revenue and Customs (HMRC) that exhibition stands can now be classified as exhibition services where they are supplied together with other accompanying services, rather than the previous land-related supply classification. This will save on VAT charges for foreign exhibitors.
“I am delighted with this fantastic news, which represents a big win for our industry,” said Karim Halwagi, CEO of the AEO.
“The changes follow ongoing discussions between the AEO and HMRC and I am thrilled to learn that HMRC have adopted and published these changes for the benefit of the UK exhibition industry.”
However, where stand space is provided with accompanying services as a package, this package (stand and services) will no longer be seen as a supply of land with land-related services but will be taxed under the general place of supply rule (customer location) when supplied to business customers.
Accompanying services provided as part of a package includes such things as the design and erection of a temporary stand, security, power, telecommunications, hire of machinery or publicity material.
“It’s excellent news,” said Trader Exhibitions MD Mark Moloney. “HMRC has taken a positive stance.”