My client is UK registered for VAT and has been approached to organise a corporate event in another EU state (Romania), but for a company that is not from an EU state. The customer is saying no VAT is chargeable on the event, valued at about €28,000, and my client will incur local VAT of about €3,000 for services provided locally in arranging and running the event.
My reading of relevant information suggests that my client may well need to register in Romania as a non resident trader, especially as there does not appear to be a registration threshold. Presumably, no local output VAT would be chargeable as the customer is an overseas entity, but this would enable my client to reclaim the €3,000 input VAT.
Does anyone have any thoughts, or is this better in the hands of an international tax expert?