Accommodation services must include tourist tax in their VAT taxable base

The integration of local or regional taxes into the taxable base of Value Added Tax (IVA) is a critical aspect for the correct settlement of hospitality services. Recently, the Dirección General de Tributos (DGT) has clarified the tax treatment that amounts received as a regional tourist fee or tax must receive within the framework of providing accommodation services.

What the DGT has resolved

The tax authority has determined that the regional tourist tax must form part of the VAT taxable base for accommodation services. This criterion is based on the existence of a direct link between the service provided, which is the stay, and the taxable event of the regional fee or tax, which is also the stay.

In accordance with current regulations, the taxable base must include those taxes that fall upon the same taxable transaction and maintain a close link to the provision of the service. In this case, as the stay is the common element, the amount of the tourist tax cannot be considered an element external to the transaction; instead, it must be integrated into the total value upon which the VAT rate will be applied.

What it means for you

For accommodation establishments, this resolution implies a direct operational obligation. The price invoiced to the customer cannot break down the tourist tax as an independent concept outside of the VAT base; on the contrary, said tax must be added to the service amount to calculate the corresponding VAT.

In economic terms, this means that the cost of the tourist tax will be reflected in the final price of the accommodation service subject to VAT. Although the direct impact falls on the company's accounting and billing management, the final cost is ultimately passed on to the end consumer, who will pay a price that integrates both the regional tax and the VAT on the sum of both concepts.

What should be done

Operators in the hospitality sector must verify their billing systems and price calculation processes to ensure that the regional tourist tax is correctly included in the VAT taxable base. It is necessary to review the application of Law 37/1992 on VAT and specific regional regulations, such as Law 5/2017 of Catalonia, to guarantee that the settlement of taxes is accurate and to avoid possible contingencies with the Tax Administration.