19 September 2023

SUCOE: the special regime without VAT for event management agencies.

SUCOE: the special regime without VAT for event management agencies.

If you are still not familiar with the SUCOE tax regime or do not know how to comply with it, in this article we offer you all the information you need to obtain its multiple benefits when producing an event. 

What is SUCOE?

SUCOE is a set of acronyms that correspond to the Single Complex Service for the Organization of Congresses and Events. It is a great initiative that favors commerce in Spain and offers its clients the possibility of organizing events and deducting the VAT incurred by developing an unique event. Likewise, the invoicing is done jointly and not in isolation by means of independent invoices.

This results in a single service, even though several services are provided, they are closely linked and are taken as a single service, which is inseparable from each other. 

Nanook is an agency with an international profile and thanks to this fiscal tool we can compete with other agencies abroad.

Events without VAT: advantages of using SUCOE

It offers the possibility of producing an event by means of a single invoice that includes all its services and the possibility of deducting its input VAT. 

This invoicing system was created to protect local agencies when their activity is in the B2B mode. Thus, its objective is to benefit not only the agency, but also the non-EU client who is contracting the service. 

This results in a total saving of the full amount of VAT. Even when some of the rates have been quoted including VAT, it would be automatically deducted. Therefore, there would be an average saving of around 15% and when VAT is applicable, it would be between 10% and 21% depending on the type of service. In the case of Spain, it would be for trade fairs and exhibitions. If the client is from outside the European Union, i.e. outside the European Union, the transaction would always be VAT free.

SUCOE requirements for VAT-free invoicing

For an event to be exempt from VAT, all of its services must be produced by a Spanish event agency with a local presence.  In that case, they will have to include an accommodation component and a meeting space.

It is important to know all the conditions and obligations to be fulfilled within a SUCOE in order not to incur in failures with tax consequences.

Regarding the requirements for the tax authorities, the contract will always have to present all its services for the service to be considered as unique. 

Another requirement will be to comprehensively include everything necessary for its conclusion so that these elements are billed jointly: 

  • There must be an organizational component
  • Services to accompanying people would be excluded

The SUCOE may only be applicable in events that are within the corporate scope. This presents some component of such character as for example:

Business meetings

  • Technical conferences and seminars
  • Congresses
  • Conferences and seminars
  • Conventions 
  • Product presentations
  • Commercial fairs

The realization and production of corporate events is a fundamental service for the development of business in any industry. It will include all services, such as the location, the reservation of spaces for the production of the event plus its aesthetic part: the decoration.

How is it invoiced?

  • EU: without VAT (the reverse charge rule applies).
  • Extra-EU: without VAT because it is not subject to the tax. 

What are the SUCOE exceptions?

Despite the fact that the Single Complex Event Organization Service includes a large number of types of events, it presents several exceptions in which the input VAT deduction could not be applied. 

Thus, the following cases should be subject to the REAV tax regime, specific to travel services:

  • Lodging and/or accommodation services (with the exception of incentive programs and SS provided to accompanying people of an event).
  • Catering
  • Access: museums, shows, fairs and congresses.
  • Rental of any vehicle
  • Guides, hostesses and interpreters
  • Team building
  • Rental of audiovisual and other professional services
  • Venue rental: halls and venues
  • Insurance and financial expenses