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V2943-17 15 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de agencias de viajes

Hotel room sales under travel agency schemes are not subject to VAT if the registered office or permanent establishment is outside Spain

A company based in the Canary Islands that sells hotel rooms via a website has enquired whether its operations are subject to VAT in mainland Spain. The DGT has determined that, as neither the registered office of its activity nor a permanent establishment involved in the provision of services is located in Spain, the operations are not subject to the tax.

The question raised

Place of performance of hotel room sales operations carried out.

The DGT's ruling

The special regime for travel agencies applies when they act in their own name and provide travel services. The provision is understood to be carried out in the place where the agency has its headquarters of economic activity or a permanent establishment. If the headquarters and the means involved in the operation (not only auxiliary) are located outside the territory to which the tax applies, the operation is not subject to VAT. Administrative tasks or IT support performed by other entities do not constitute a permanent establishment for the provision of the service.

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