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VAT -services provision in other EU state

Making a one off service provision in another EU state for a client not from an EU state

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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?

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25th Feb 2019 11:24

Place of Supply rules are different for supplies of exhibition services (trade stands, etc), and admission to an exhibition. The former is General Rule; the latter is where the event occurs.
If admission is free of charge, no liability to register in Romania arises; and you will have to claim the input tax using the EU Refund Scheme.
If you charge for admission, you will have to register in Romania, and will be able to recover the input tax.

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