VAT refund agencies do not perform deliveries of goods to tourists

The legal nature of VAT refund operations for non-resident travelers has been subject to analysis by the Tax Administration. The debate centered on determining whether the intervention of a collaborating entity in the management of these refunds implied a double delivery of goods: one from the supplier to the intermediary and another from the latter to the final consumer.

What the DGT has resolved

The Directorate General of Taxes (DGT) has determined that there are no two simultaneous or successive deliveries of goods in this business model. The criterion establishes that a single delivery of goods occurs when the commercial establishment transfers the power of disposal to the non-established traveler.

The resolution underlines that the goods are acquired directly at the supplier's establishment. Therefore, the existence of additional contracts or collaboration agreements with the entity managing the refund does not alter the legal nature of the operation for Value Added Tax (IVA). The applicant does not act as a link in the supply chain of the goods, but rather as a manager of the tax recovery.

What it means for you

For companies operating in the VAT refund management (Tax Free) sector, this resolution provides certainty regarding their business model. Since it is clear that the collaborating entity does not perform its own delivery of goods, the erroneous classification of the operation as a double transaction subject to IVA is avoided.

This criterion confirms that the refund management activity is independent of the transfer of ownership of the goods. Companies in the sector should not consider that their intervention generates a new delivery of goods between the agency and the tourist, which clearly delimits the scope of application of the tax in their management services.

What should be done

Entities that manage VAT refunds for non-resident travelers must ensure that their operations remain aligned with this DGT criterion. It is fundamental that contractual documentation reflects the nature of the provision of management services and not a participation in the sales chain of the goods. It is recommended to verify that billing processes and contracts with suppliers of goods do not lead to errors regarding the ownership of the delivery operations.