VAT Risks for Event and Travel Packages Between Switzerland and the EU: Classification and Consequences

• Organizers often offer event packages that include additional services like accommodation and transport, complicating VAT treatment.
• The distinction between event services and travel services is crucial, as it affects where VAT is payable, registration requirements, and input tax deduction.
• Event services are taxed where the event takes place, often requiring VAT registration in that country and allowing input tax deduction.
• Travel services are subject to special VAT rules: in the EU, only the margin is taxed and input tax deduction is excluded; in Switzerland, resale may be tax-exempt but input tax deduction is generally not possible.
• Combined packages blur the line between event and travel services, increasing the risk of misclassification and potential double taxation, especially for cross-border events between Switzerland and the EU.

Source: primetax.ch

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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