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V3166-17 11 December 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · suplidos

Cruise stay tax may be treated as a disbursement for VAT purposes if certain requirements are met

A shipping agency has enquired whether the tax on stays in tourist establishments, paid on behalf of cruise ship owners, should be included in the VAT taxable base. The Directorate General for Taxes (DGT) responds that it may qualify as a disbursement and analyses the taxation of cruise services.

The question raised

Whether Value Added Tax (hereinafter, VAT) must be charged due to the pass-through to the operator of the tourist cruise vessel of the amount paid on behalf and for the account of the former in respect of the Tax on Stays in Tourist Establishments, and whether the operator of the tourist cruise must, in turn, charge VAT to the passengers of said vessels.

The DGT's ruling

The amounts paid by the consignee on behalf and for the account of the cruise operator for the stay tax may be reimbursed if there is an express mandate, the exact amount is justified, and an invoice is issued charged to the client. Regarding the cruise service, it is considered a single provision of passenger transport that includes ancillary services. Said provision shall be subject to VAT for the portion of the journey within Spanish territory, but shall be exempt if the cruise is destined for a port outside the territorial scope of the tax.

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