Skip to content
Back to index
V2414-20 14 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de inmuebles

Hotel accommodation services provided by an agency in its own name are subject to VAT

A tourism agency manages non-resident properties for third-party rental with hotel industry services. The DGT determines that the agency acts in its own name and provides hotel accommodation services, which are subject to VAT.

The question raised

Taxation of the operations described in Value Added Tax and the possibility of deducting the tax amounts incurred in the performance of the aforementioned operations.

The DGT's ruling

Furnished real estate rental services that include complementary hospitality industry services do not benefit from the exemption under Article 20.One.23º. By acting in their own name and subletting, the agency provides hotel accommodation and similar services. The special regime for travel agencies applies when they use services provided by other entrepreneurs. Under this regime, agencies may not deduct the tax incurred on acquisitions that directly result in a benefit to the traveler.

Book your free first meeting