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V1756-17 6 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · suplidos

VAT should not be applied to Tourist Stay Tax paid on behalf of clients, provided disbursements requirements are met

A shipping agents' association has enquired whether VAT should be applied to the Tourist Stay Tax paid on behalf of cruise ship owners. The Directorate-General for Taxes (DGT) has ruled that, if the requirements for disbursements are met, such amounts do not form part of the VAT taxable base.

The question raised

Whether Value Added Tax must be charged due to the impact on cruise ship owners of the amount paid in the name and on behalf of the former in respect of the Tourist Stay Tax.

The DGT's ruling

The amounts paid by consignees in respect of the Tourist Stay Tax do not form part of the VAT taxable base if they act as payments made on behalf of others. To this end, they must be paid in the name and on behalf of the client by means of an express mandate, the amount must coincide exactly with the expense, and the invoice must be issued to the charge of the client and not the intermediary. If acting in one's own name, the exclusion from the taxable base is not applicable.

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