Save on VAT via SUCOE

Five letters that save you money…SUCOE

 

When organizing a meeting/business event in Spain through Cititravel DMC, you can save upfront, the totality of the Spanish VAT. The standard VAT is 21%, the reduced VAT is 10%. On average, you will pay around 15% less!

This unique system is called SUCOE (“Servicio Único y Complejo de Organización de Evento” which translates as “Unique and Complex Single Service of Event Organisation”). No other European country is offering the same fiscal advantages for MICE events.

Save money, time, and hassle! As a certified DMC, Cititravel will take care of everything.

SUCOE explained

The objective of the SUCOE billing system is to promote commerce with Spain.  The tax law came into effect in January 2015, and has enabled many clients already to make the most out of their business event here in Spain! 

SUCOE requirements

To categorize an event for SUCOE, it must be a business event with a clear meeting purpose: Conferences, symposiums, meetings, conventions, product launches and corporate events. This means that services such as meeting rooms, AV equipment should be clearly indicated and be part of the quote.

Furthermore, the event should be completely organized and invoiced through a professional DMC such as Cititravel DMC.

How does this work in practice?

If you are organising an event in Spain and choose CITITRAVEL DMC to contract all the different services required (such as accommodation, transport, meeting spaces, food and beverage, AV equipment, guided tours, etc.), these elements, taken as a whole, can be treated fiscally as integral service of event organisation.

This means that B2B operations involving companies that have the right to deduct or reclaim VAT, can effectively be run VAT-free in Spain. Cititravel will still have to pay the appropriate amount of VAT to the different local suppliers and then reclaim it from the Spanish tax authorities, but Cititravel will not invoice the VAT to its clients. The client will not be involved and will not pay any Spanish VAT – meaning you save the VAT amounts upfront!

Exceptions for the SUCOE rule

ATTENTION: Partner’s programmes, incentive trips with no business content, extended stays and services not clearly related to the core business content of the event may not form part of a SUCOE-categorized event.

Individual services requested on a B2B basis that cannot be considered as a “unique and complex single service of event organisation” may also be eligible for special treatment in respect of VAT. Requested individually, services relating to accommodation, transport and F&B would be invoiced under the standard Spanish VAT system.

 

Paperwork

Each individual event needs to be reviewed on its merits to see which ones qualify as a SUCOE and which ones should be invoiced under the standard Spanish VAT system.  If an event qualifies as a SUCOE, there is a specific separate contract the customer needs to sign to confirm the business purpose of the event and the complex nature of the services involved.

Sucoe events

How can Cititravel DMC help:

Cititravel’s expertise in determining if your event qualifies as a SUCOE is fundamental. Interpreting this tax law correctly is vital as this will determine how VAT payments and refunds are handled correctly and legally. Having collaborated in the legal process of developing the SUCEO billing system together with Spanish authorities and Spain DMC’s association, we have clear understanding of the rules and policies regarding this matter.

Please don’t hesitate to contact our offices in Spain in case you have any doubts regarding how to organize your SUCOE business event safely in Spain.

 

SUCOE saves you VAT

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