Association Insight International & European 1 | Page 48

Association Success Story
Data Analysis:
VAT is a challenge to the events industry. A challenge that can have serious consequences if it is not managed
properly. To avoid accusations of fraud and unexpected VAT demands it is essential that you develop strong
links with a suitably experienced and qualified VAT consultant.

Results:
1. All incoming invoices were corrected and this resulted in the HMRC accepting a reduction in their VAT
demand of £105,010.
2. All outgoing invoices were corrected and this meant that no penalties were imposed on the association.
3. BC&A’s negotiations with the HMRC were successful and resulted in the HMRC dropping all penalties and
default interest demands.
4. Finally, the final amount paid to the HMRC was reduced to £22,658.
5. There has been no impact on the participants.

Learning Points:
It is essential that, right from the start of the planning process for an event, suitable VAT consultants are
involved to ensure compliance with the complex local tax regulations. This saves time, money and potential
legal headaches. It can also help to increase the revenues generated.

Conclusion:
The association is seeking to increase awareness of the implications that local VAT laws can have for event
organisers. It also is working closely with their VAT consultant to ensure that this situation doesn’t occur
again no matter in which country they hold their annual congress.