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V1296-22 8 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de agencias de viajes

Opening an office may constitute a permanent establishment subject to VAT under the travel agency special scheme

A travel agency based in the Canary Islands has enquired whether opening an office in mainland Spain would require it to pay VAT under the general regime. The DGT indicates that if such an office constitutes a permanent establishment, the operations carried out from it will be subject to VAT under the special scheme for travel agencies.

The question raised

Liability for Value Added Tax on operations carried out by the territorial work office within the scope of the tax.

The DGT's ruling

For an office to constitute a permanent establishment, it must possess an adequate structure of human and technical resources with a sufficient degree of permanence. If these requirements are met, the provision of travel services carried out from said establishment shall be subject to VAT under the special regime for travel agencies. The existence of a subsidiary or the mere tax identification number is insufficient to prove the existence of a permanent establishment.

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