Travel agencies may apply the special regime for combined services

Travel agencies marketing tour packages while acting on their own behalf have received a relevant clarification regarding the application of the special regime for Value Added Tax (VAT). The ruling addresses the nature of operations that combine different services and how they must determine their taxable base and the timing of accrual.

What the DGT has ruled

The Dirección General de Tributos (DGT) establishes that the special regime for travel agencies is applicable when the entity acts on its own behalf using third-party services to organize trips that include, at a minimum, transport or accommodation, along with ancillary services such as shows. In these cases, the provision is considered a single operation.

Regarding taxation, the administration indicates that the general rate of 21% must be applied to the gross margin obtained. Likewise, it is clarified that if the services are partially performed outside the European Community, only the portion corresponding to the services provided abroad will be exempt from this tax. Regarding accrual, the tax must be settled at the time the service is provided or, in the event of advance payments, at the time of collection.

What it means for you

For travel agencies, this criterion confirms legal certainty in applying the gross margin as the taxable base when transport and accommodation services are integrated. The resolution also offers an operational solution to the difficulty of knowing exact costs at the time of accrual: the taxable base may be set provisionally using well-founded criteria, allowing for accounting management consistent with the reality of the activity.

What should be done

It is necessary to verify that the structure of the marketed tour packages meets the requirements for combined services to avoid errors in the application of the special regime. Companies must ensure that their billing and VAT accrual system is capable of correctly distinguishing between services performed within and outside the European Community to apply the exemption accurately. It is recommended to analyze the methodology for calculating the provisional taxable base to ensure it complies with the criteria required by current regulations.