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V2605-18 25 September 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de agencias de viajes

Special travel agency regime applies to guided tour services including accommodation or transport

An entrepreneur organising bicycle tours that include hotels, restaurants, and excursions has requested a ruling on VAT and IAE liability. The DGT has determined that the special travel agency regime must be applied and the activity must be classified under the travel agency group.

The question raised

Question raised: Liability of the services provided by the applicant for Value Added Tax and the Heading of the Business Activities Tax.

The DGT's ruling

Services provided in one's own name that utilize goods or services from other entrepreneurs and constitute a trip with accommodation or principal transport are subject to the special regime for travel agencies. Services carried out using own means, such as the use of bicycles or guide services, are subject to general rules. Regarding the IAE, the activity is classified under group 755 for travel agencies. Goods or services acquired for the trip that directly result in a benefit for the traveler shall not be subject to deduction.

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