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V0185-16 20 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de agencias de viajes

Travel agencies may opt for general VAT regime if recipient is businessperson or professional with deduction or refund rights

A travel agencies federation asks whether the general VAT regime can be applied instead of the special travel agency regime. The DGT clarifies that such an option is available when the recipient is a businessperson or professional entitled to deduction or refund of tax.

The question raised

Issues regarding the application of the general Value Added Tax regime to the recipients of their travel services under the conditions referred to in Article 147 of Law 37/1992.

The DGT's ruling

Travel agencies may opt for the general VAT regime, on an operation-by-operation basis, when the recipient is a businessperson or professional entitled to the deduction or refund of the tax. This option must be communicated in writing to the recipient prior to or simultaneously with the provision of services. If the general regime is chosen, the operations comprising the travel service shall be taxed independently according to the general rules of location and applicable rates.

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