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V1177-16 23 March 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 business entity entitled to deduction or refund

A travel agency asks whether it can apply the general VAT regime instead of the special travel agency regime when its customers are businesses or individuals. The DGT responds that the general VAT regime can be chosen only if the recipient is a business or professional entitled to deduction or refund.

The question raised

Application of the general Value Added Tax regime to the recipients of their services, including travel services under the conditions referred to in Article 147 of Law 37/1992.

The DGT's ruling

The special regime for travel agencies applies to travel services composed of accommodation or transport with ancillary services. However, it is possible to opt for the general regime, on an operation-by-operation basis, if the recipient is a businessperson or professional entitled to the deduction or refund of VAT. This option must be communicated in writing to the recipient prior to or simultaneously with the provision of services. If the recipient is an individual, it is not possible to apply the general regime through this option.

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