Examples of VAT Rules

Warning!  

These examples show how to define and use VAT rules; do not take this as tax advice.

For these examples, assume you have a home base in the United Kingdom (default org has VAT enabled and VAT Country is GB) and you have three upcoming events where your tax advisor has given three different VAT treatments:

  • In-person event in UK – All registrants (except those flagged as VAT Exempt), regardless of location, should pay VAT.  No VAT Rule is needed; let the default VAT treatment apply.

    • Rule: None; the VAT Rule drop-down should remain blank when the event is defined.

  • Online event – Following the “General Rule” under Articles 44 and 45, the tax advisor has said that, in addition to those flagged as VAT Exempt (who are never charged VAT under any circumstance), all registrants who are VAT Registered and in an EU country other than that of the default organization should be excluded from VAT.  All others, including those in the same country and those outside of the EU, should be charged VAT.

    • Rule: Create a rule with a single criteria line only:

    VAT Registered Company Contact Contact Country VAT Chargeable

    Yes

    n/a

    Other EU country

    No
  • Event in France – The French guidelines for this event state that all companies as well as those who are VAT registered and who have a French address should not be charged VAT.  All others, except for those flagged as VAT Exempt, should be charged VAT.

    • Rule: Since the guidelines allow for either a Company Contact or a contact whose VAT Registration Number is populated to be excluded, create a rule with two rows:

    VAT Registered Company Contact Contact Country VAT Chargeable

    Yes

    n/a

    Same as place of supplier

    No

    n/a

    Yes

    Same as place of supplier

    No
  • Event in Italy – The Italian guidelines and tax advice for this event state that all company contacts in either a different EU Country or one outside the EU should be exempt from VAT.  The VAT registration status connected to the registrant has no bearing.

    • Rule: Since the guidelines specify only company contacts in a country other than Italy, create a rule with two rows:

    VAT Registered Company Contact Contact Country VAT Chargeable

    n/a

    Yes

    Other EU country

    No

    n/a

    Yes

    Outside the EU

    No

    Note: When defining events that are held in a country other than the home location of the organization, you must assign an entity code to the event.