What VAT rate should you apply to your ticketing?
In the event industry, there are various VAT rate. And because it is important to apply a suitable rate to each of your tickets sold, it is essential to understand them to know which one you should refer to. Wilout explains everything about the VAT rates applied to the ticketing in this article.
Understand the VAT rates applicable to ticketing
In France, the value added tax (VAT) applies to most goods and services, including sale of tickets for events. The applicable VAT rate depends on the nature of the event and the associated services.
For easily manage the creation of your tickets and the application of your VAT rates, create your online ticketing for free with Wilout Online and benefit from a multitude of advantages for your event.
Standard rate of 20%
The standard VAT rate in France is 20%, and it generally applies to sales of goods and services who do not benefit from a reduced rate. For example, in a ticketing context, this rate is used for sporting events, the popular music concerts or of variety, the general entertainment shows or most of festivals.
If one of the events mentioned corresponds to the one you are organizing, then you will have to apply a rate of 20% VAT to your tickets.
Reduced rate of 5.5%
The tax administration has defined specific criteria to benefit from a rate of VAT reduced to 5.5%. This is the case for cultural events such as live shows (theater, dance, opera), classical music concerts Or art exhibitions.
Before applying this rate, we invite you to check the eligibility of your event with the tax authorities.
Super-reduced rate of 2.1%
A super-reduced VAT rate of 2.1% applies in specific cases, such as for example the first 140 performances of a theatrical work, newly created or presented in a new staging.
This rate is rarely applicable for event ticketing, but it is important to know it if you are organizing specific cultural events.
Free ticketing and VAT
If you are organizing a free event, you will obviously not have to set a VAT rate on your tickets, because there is no financial transaction. However, think of others paid services that you could offer such as catering or merchandising stands. These sales may be subject to VAT at the rate corresponding to the nature of the good or service sold.
To easily manage registrations, you can use a online ticketing platform 100% free like the one proposed by Wilout.
Choosing your ticketing platform and its fiscal implications
The model used by the online ticketing platform that you choose may have an impact on VAT management. Indeed, ticketing platforms generally choose between two types of contracts.
Mandate contract
In this model, as the organizer, you are the ticket seller. The ticketing platform acts as an intermediary, by providing you with a ticketing tool to make it easier for you to sell. You are therefore responsible for collecting and remitting VAT. This model allows for total transparency on sales and the collection of participant data.
Commission contract
Here, the ticketing platform is the ticket seller in its own name, and pays you a commission as a result of these sales. In this case, it is therefore the platform that is responsible for collecting and repaying VAT. This model facilitates your tax management, but you have less control over your attendee data.
By knowing these two very different models, you can thus choose the model of VAT collection and The ticketing tool the most suited to your event and your management preferences.
Wilout offers you a online ticketing solution, which invites you to choose the model that best fits your needs and fiscal structure.
Use an online ticketing system to manage your VAT
As mentioned earlier, online ticketing tools allow you to manage the VAT of your event for you.
Automated VAT rates :
First, the appropriate VAT rate will be automatically applied depending on the type of event chosen when it was created.
Complying invoices and tickets :
Because of legal obligations when it comes to VAT must be applied to invoices and tickets, the ticketing platforms make sure to provide you with complete templates.
Detailed reports :
Some of the most comprehensive platforms give you access to a centralized management dashboard, where you can find detailed reports on sales and VAT collected. This makes it easier for you to find your tax returns.
With a solution as proposed Wilout, you have access to other tools for organizing your event, and in particular to manage the VAT of your products on sale other than tickets. Regardless of the type of event you are organizing, the Wilout online ticketing perfectly adapts each aspect, including VAT management, to any type of event.
Set up VAT from your Wilout backoffice
If you have created your online ticketing with Wilout, and you want to set up your VAT. Nothing could be easier! all you have to do is go to your Back office, then in”configure“, and”general“. Finally, all you have to do is indicate the rate that best corresponds to your event.
So, in events as you will have understood, determining VAT is more complex! Three rates are possible: 2.1% or 5.5% or 10%. You will need to pay attention to various factors in order to be able to apply the right VAT rate to your ticket office. Is your event original and new? Or rather cultural? Or do you offer drinks on site? So many questions that you are going to have to answer. Each event should be studied in a unique way!
Whether you're planning a concert, a show, a festival, or even a free event, well-thought-out online ticketing will save you time and help you better manage your sales. Wilout offers you a clear and effective platform for ticketing, track your bookings and keep an eye on your numbers.
Do you want to know more or to test our solution? Contact us to talk about it now or test for free !
Note: The information provided in this article is for informational purposes only and does not constitute tax advice. It is recommended that you consult a professional for advice adapted to your situation.
