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V2040-20 19 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · iae

Urban passenger transport with guides must pay IAE under travel agency heading and 10% VAT

An urban transport company conducting tourist tours with historical narratives has requested clarification regarding its IAE heading and the applicable VAT rate. The DGT has determined that it must pay tax as a travel agency under the IAE and apply the reduced VAT rate of 10%.

The question raised

Whether the heading for the Tax on Economic Activities is correct. The applicable tax rate for Value Added Tax.

The DGT's ruling

For the IAE, the activity of passenger transport via tourist routes with narration must be classified under group 755 (travel agencies), as it encompasses the management of transport. Regarding VAT, when providing passenger transport services using own means, the reduced tax rate of 10% applies pursuant to article 91.one.2.1º of Law 37/1992.

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