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A travel agency based in the Canary Islands has enquired whether opening an office in mainland Spain would require it to pay VAT under the general regime. The DGT indicates that if such an office constitutes a permanent establishment, the operations carried out from it will be subject to VAT under the special scheme for travel agencies.
This ruling clarifies the criteria for determining whether a physical presence in mainland Spain triggers VAT obligations under the special travel agency regime versus the general regime, impacting how agencies manage regional expansions.
The tax team reviews your specific situation.
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