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The Author of the Article
Behind the Organization of an International Event
International associations frequently rely on Professional Congress Organisers (PCOs) to manage the practical organisation of congresses and conferences, particularly for international events involving multiple suppliers, participants and stakeholders.
Depending on the arrangement, the PCO’s involvement may range from providing support with specific tasks to managing almost the entire operational organisation of the event, including registrations, supplier negotiations, logistics, invoicing and payments.
From a tax perspective, however, the PCO’s operational role does not necessarily determine who is considered to be the organiser or supplier of the event. Even where the PCO is extensively involved in its day-to-day management, the legal and tax position must be considered separately, and the contractual and invoicing arrangements should clearly reflect the respective roles of the parties.
Hidden Tax Implications
From a legal perspective, the association remains the organiser of the event, even where a PCO manages the practical organisation on its behalf. The association retains the responsibility and financial risk associated with the event, while the PCO acts on its behalf in carrying out the agreed organisational tasks.
Regardless of the arrangement agreed with the PCO and the extent of its involvement in the organisation of the event, this distinction should be clearly reflected in the invoicing process. Where the PCO handles the invoicing of registration fees, invoices should be issued in the name and on behalf of the association and should include the association’s details, including its name, address and applicable VAT number.
The same attention should be paid to invoices received from event suppliers. Ensuring that invoices are issued to the correct entity is particularly important to preserve the association’s right to recover input VAT on event-related costs.
As the association remains the legal organiser, the contractual arrangements and invoicing flows should clearly reflect this position.
The expert’s eye
In practice, PCOs may sometimes propose using their own VAT number when invoicing registration fees, for example to simplify the invoicing process. Associations should therefore ensure that the contractual terms with the PCO clearly reflect that the association is the legal organiser of the event and that registration fees are invoiced in the name and on behalf of the association, using the association’s VAT details.
Using the PCO’s VAT number could create inconsistencies between the legal and VAT treatment of the event, potentially affecting the association’s VAT registration and reporting obligations as well as the recovery of input VAT on event-related costs. These aspects should therefore be carefully reviewed when negotiating the agreement with the PCO.