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Value-added tax (VAT) is a relevant topic for event managers when taxable revenues are generated through ticket sales. Different thresholds and tax rates apply in Germany, Switzerland, and Austria, which organisers must consider. In this blog post, we provide you with an overview of the key points related to VAT when selling business event tickets.
With over 20 years of experience in the event industry, both as an organizer and in the development of digital technologies for events, Marc combines his extensive expertise with a Master's in Digital Business Management and a Bachelor's in Business Administration with a focus on Marketing.
VAT obligations for business events vary by country and depend on whether ticket sales generate taxable revenue. In Germany, the standard VAT rate of 19% applies to most paid event tickets, whilst Switzerland applies 8.1% and Austria 20%, each with different registration thresholds. Event organisers should clarify their VAT liability before selling tickets to avoid penalties, and consider working with a tax adviser when organising paid events across multiple jurisdictions.
Selling event tickets generates revenue that may be subject to VAT. Proper handling of VAT is essential to avoid legal and financial risks. Organisers of business events should ensure that they are aware of their tax obligations and comply with them correctly.
Failing to comply with VAT obligations for business events can have unpleasant consequences for event managers, including:
VAT liability is handled differently across the DACH region. The following specifics apply to each country:
A company becomes VAT-liable if its annual revenue exceeds the small business threshold of €22,000. Certain non-profit events are exempt, but business events usually do not fall under this category.
VAT liability arises if a company generates more than CHF 100,000 in revenue worldwide. This also automatically applies to companies that organise events and sell tickets.
Non-profit, volunteer-led sports and cultural associations and charitable institutions are only liable for VAT if their revenue exceeds CHF 250,000. (Source)
Event organisers are subject to VAT if their revenue exceeds the small business threshold of €35,000.
VAT exemptions also vary by country. The following types of events are exempt from VAT under certain conditions:
Business events such as conferences or paid training sessions are generally not exempt from VAT.
Special rule: For tickets including services such as entry and an aperitif, revenue must generally be itemised separately. If this is not possible, the total ticket revenue is taxed at the standard rate of 8.1%.
When calculating VAT for event ticket sales, the applicable national standard or reduced rates must be applied.
Example VAT calculation for Switzerland:
Ticket price: CHF 100 (including VAT)
Net revenue: CHF 92.50
VAT (8.1%): CHF 7.50
This example shows that whether event tickets are sold inclusive or exclusive of VAT can significantly impact revenue. The chosen pricing approach can have a substantial effect on ticket income.
For international events, the place of service provision determines tax liability. If a German company organises a paid event in Switzerland, it becomes subject to VAT there.
For digital ticket sales, VAT regulations often follow the buyer’s country (EU rule). In any case, consulting a tax expert for international events is recommended.
Eine Event Software muss beim Verkauf von Event Tickets folgende minimalen Anforderungen erfüllen können:
An event software must meet the following minimum requirements for VAT-compliant ticket sales:
We hope this guide has helped shed light on VAT for business events and wish you success with your next event.
Further resources:
Whether VAT is payable depends on whether the event involves taxable services and in which country they are provided. As a general rule, business events are subject to VAT, although different tax rates or exemptions may apply depending on the service (e.g. admission, catering or additional services).
VAT is either included in the price or shown separately, depending on the pricing logic settings. It is important that organisers apply the correct tax rate and clearly specify whether prices are shown inclusive or exclusive of VAT.
Event management software helps to accurately reflect VAT rules by supporting different tax rates, pricing logic and currencies for each event or booking option. This automates invoicing, reduces errors and increases tax transparency.
Find out more about how Oniva can support your online ticket sales.
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