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V0580-18 28 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de agencias de viajes

Travel agencies may opt for the general VAT regime and deduct input tax under certain conditions

A company reselling domestic flights has enquired whether it can use the special invoicing system for travel agencies and if it may opt for the general VAT regime. The DGT has ruled that it may opt for the general regime provided its customers are businesses or professionals entitled to VAT deduction or refund.

The question raised

Whether the retail company may avail itself of the invoicing system established in the fourth additional provision of the Invoicing Regulations.

The DGT's ruling

A company that resells transport services in its own name may apply the general VAT regime if the recipients are entrepreneurs or professionals with the right to deduction or refund of the tax. By opting for the general regime, it may deduct the amounts incurred in the acquisition of goods and services for the trip, even if they directly benefit the traveler. Regarding invoicing, the retail agency acting on behalf of another must issue invoices following the fourth additional provision of the Invoicing Regulations.

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