The VAT treatment of event organisation has always been a difficult area, often with considerable uncertainty as to the appropriate approach. Events agencies have to contend with complex rules and clients who, quite reasonably of course, want to ensure that unnecessary costs are avoided.

It is to be welcomed, therefore, that HMRC has indicated it is willing to discuss the problems and to work towards an agreed guidance note which will set out in one place the VAT issues that need to be considered when planning an event.