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V1405-19 12 June 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de agencias de viajes

Mediation services by a travel agency on behalf of a third party are not considered real estate-related services

A travel agency inquired whether its mediation services for selling hotel stays on behalf of a Canarian wholesaler are subject to VAT within the tax territory. The DGT ruled that, as the agency acts on behalf of a third party, the mediation does not constitute a service related to real estate and is deemed to be performed where the recipient is established.

The question raised

Subjectivity of said services to Value Added Tax and the method of invoicing to said clients.

The DGT's ruling

Mediation in the provision of hotel accommodation carried out on behalf of and for the account of a third party is not considered a service related to real estate. Therefore, the place of supply of such mediation is where the recipient of the service is established. In this case, as the recipient is an agency in the Canary Islands without a permanent establishment in the territory of application, the mediation is not taxed here, although the accommodation service is taxed in the territory where the hotel is located.

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