Conferences and Czech VAT
Conference and VAT charging
Conferences and seminars can be regarded in the same category as cultural, artistic, scientific, educational, sporting, or entertainment events.
Event can contain of two different types of participation such as
- passive participation – sitting and listening
- active participation – driving cars
When considering the question of VAT registration, these aspects should be evaluated
Passive participation
place of the taxable service is always in the country where the event is being organized (Czech Republic). It does not depend if VAT charged to VAT payers or not.
Active participation of the attendees in the conferences
earnings will be regarded as taxable, according to normal tax rules. Therefore a difference must be made between charging VAT for payment for entering an event or charging (or reverse-charge) VAT for services provided to the clients. Organizer must charge VAT to not VAT registered attendees in any case.
If one overall package is being provided considering both passive and active participation, VAT is being charged for the whole package.
Travel service
If the conference is much broader than a simple programme of speeches and presentations with, for example, accommodation and meals also offered in one package, then this changes the perspective of the local tax office and means that the activity is regarded as a travel service. In this case, VAT registration is not required.
What to do
VAT registration is necessary before start of selling tickets or issuing invoices.
A taxable person who does not have a local office or operation has the possibility under VAT law to voluntarily register as a VAT payer. On the other hand, a taxable person with no local headquarters is subject to the tax if they offer goods or services subject to VAT. Registration for VAT must take place within 15 days of the activities subject to VAT having commenced.
More details on these aspects can be found on our web pages on How to register for VAT and VAT registration.
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