VAT at trade fairs and exhibitions

The DGT considers that in the tourism promotion fairs the reduced rate will be applied, where appropriate, to the services that are provided directly by the organizers, both to the participants in the same (exhibitors) and to the visitors.

A regional Public Agency develops the tourism promotion activity of its Autonomous Community by attending international fairs organized by entrepreneurs not established in the territory where the tax is applied. The organizers of the fairs provide services that include the lease of space at the fair, the assembly and installation of an individualized and personalized stand and other services closely related to the presence of the consultant at the respective fair. The type of tax applicable to the services received by the consultant is questioned.

The criterion of the DGT is that, with respect to the applicable tax rate, the LIVA establishes that the 10% rate will be applied to the provision of services consisting of exhibitions and trade fairs of a commercial nature.

The objective scope is limited to trade fairs and exhibitions of a commercial nature, without which the exhibitions, fairs or demonstrations whose main purpose is the diffusion or promotion of culture or scientific knowledge can be considered included in it. This same conclusion is applicable even if in these fairs, exhibitions or cultural events products are commercialized or the products of certain entrepreneurs or professionals are promoted commercially.

The cultural or commercial nature of a fair or exhibition will depend on the purpose or object of it, so that trade fairs or exhibitions that have the purpose of promoting the goods or services of the participants will have a commercial character.

The services provided by the promoters of such events that will be subject to the reduced tax will be, among others, the rent or cession of the necessary space, within the fair or exhibition, to the participants, installation or decoration of the stands, cession of furniture, electricity, telecommunications services, cession of auxiliary people, advertising and other services provided to said participants or, as the case may be, to the visitors, and are necessary for their normal development.

For the application of the reduced type to proceed there are two fundamental requirements:

1º They must be services rendered within the framework of fairs or exhibitions of a commercial nature.

2º The services must be provided by the promoter of the fair or exhibition regardless of the public or private nature of the same and the recipient of such services.

For such purposes, the person or entity that carries out the organization of the material and human resources or one of them for the purpose of holding such a fair or exhibition is considered to be the organizer of a fair or exhibition. Therefore, the reduced rate will be applied, where appropriate, to the services that are provided directly by the organizers of trade fairs and exhibitions, both to the participants (exhibitors) and to the visitors of said events.

Notwithstanding the services of organization of the fairs received by the consultant when he does not act as an entrepreneur or professional, they would be understood to be rendered in the place in which it is developed, therefore, said service is subject to VAT only when the fair international development in the territory of application of the Tax.