Organizing a Congress in Belgium: Key VAT Considerations

If your company is planning to host a seminar, conference, or congress in Belgium, it’s crucial to understand the VAT obligations involved. If you’re interested in learning more about the applicable VAT on registration fees, the need for VAT registration, working with a Professional Congress Organizer, the right to deductions, and how to avoid penalties, it’s definitely worth continuing to read.

Is Belgian VAT Applicable to Registration Fees?

The place of supply of services in respect of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar physical events, such as fairs and exhibitions, and of ancillary services related to the admission, shall be the place where those events actually take place. Consequently, Belgian VAT is applicable on participant registration fees when organizing an event in Belgium.

However, as of January 1, 2025, new VAT rules apply to virtual events. For both B2B and B2C participants, VAT is applicable based on the location of the participants rather than where the event is held. In B2B situations, where the participant is located in another member state, the reverse charge mechanism can be applied. In B2C situations, the reverse charge mechanism can’t be applied. Although VAT cannot be reversed charged to the customer, the One-Stop-Shop (OSS) scheme can provide some relief in B2C situations.

Do you need to register for VAT in Belgium?

Generally, when organizing a physical event in Belgium, your company must charge Belgian VAT on participant registration fees. However, the specific VAT rules depend on several factors, such as whether the participants are individuals (B2C) or businesses (B2B), and whether the event has an educational focus.

When invoicing non-Belgian business participants (B2B) without a Belgian VAT number and fiscal representative, the reverse charge mechanism cannot be applied. In such cases, the organizer must charge Belgian VAT and register for VAT in Belgium to report this VAT through periodic VAT returns.

Similarly, when invoicing individual participants (B2C), the reverse charge mechanism does not apply, meaning the organizer must charge Belgian VAT and register for VAT in Belgium to report this VAT through periodic VAT returns.

If the event is focused on vocational education, the registration fees may be exempt from VAT in Belgium, provided certain conditions are met.

Working with a Professional Congress Organizer (PCO)

Some companies opt to delegate the event’s organization to a Professional Congress Organizer (PCO). A PCO can manage everything from registration and catering to venue rentals and accommodation. Depending on the agreement, the PCO could act as:

– An intermediary (acting in the name and on behalf of your company),

– A commission agent (acting in its own name, but on behalf of your company), or

– The event organizer (acting in its own name and on its own behalf).

The role of the PCO as an intermediary, commission agent or congress organizer affects the need for VAT registration on behalf of your company. In the case the PCO acts as an intermediary or commission agent, you still need to register for VAT in Belgium. Only if the PCO is acting as the event organizer, your company does not need to register for VAT in Belgium.

Can Your Company Recover Belgian input VAT?

In principle, the organizer of a congress in Belgium can reclaim VAT on local expenses related to the event’s organization, such as the rental of the conference room, audiovisual equipment, speaker fees, hostesses, security, and similar services, in case the congress generates VAT-taxed output, for example, when registration fees are subject to VAT. However, in Belgium, certain expenses, like hotel costs, catering and restaurant costs, are generally excluded from VAT deductions, unless they are cross charged ‘as such’.

Avoiding Penalties – Understanding Belgian VAT to Safeguard Your Profits

Ensuring full compliance with Belgian VAT rules is key to the success of your event in Belgium. Failure to comply with VAT obligations can lead to significant financial penalties, which would result in costly tax disputes and financial losses. By addressing VAT regulations from the start, you can protect your company’s profits and avoid unwanted penalties.

If you would like more information on this topic or if you are interested in registering for VAT in Belgium, our specialists at Van Havermaet will be happy to assist you!