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V2940-21 19 November 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · transporte de viajeros

Road passenger transport is subject to VAT only for the portion of the journey within Spain

A query was raised regarding whether a passenger transport service originating in France and destined for Spain is subject to VAT. The DGT ruled that the tax applies solely to the part of the journey conducted within Spanish territory.

The question raised

Subjectivity of the aforementioned service, in whole or in part, to Value Added Tax.

The DGT's ruling

Passenger transport services are subject to VAT for the portion of the journey occurring within the territory to which the tax applies, regardless of the status or location of the recipient. In this case, a tax rate of 10 percent must be applied to said portion of the journey. For the portion of the journey carried out in another Member State, the regulations of that country shall apply.

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