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V0336-16 27 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de agencias de viajes

Special travel agency scheme applies if service includes transport or accommodation

A travel agency association has requested clarification on the taxation of event planning (MICE) and travel services. The DGT clarifies when the special travel agency scheme applies and when a service is considered a single event planning service.

The question raised

Subjectivity of operations to Value Added Tax.

The DGT's ruling

Congress organization or business event services constitute a single supply if their elements are closely linked. The special regime for travel agencies applies when the service includes transport or accommodation along with other ancillary services. If the organizer only provides isolated services that do not form a complex service, each supply shall be taxed independently.

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