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V0186-16 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 entrepreneur or professional with deduction or refund rights

A travel agencies association asks whether they can apply the general VAT regime instead of the special travel agency regime when their clients are entrepreneurs or professionals. The DGT responds that this is possible if the recipient is an entrepreneur or professional entitled to deduction or refund.

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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