The travel agencies in Spain are subject to a special tax regime with regards to way the of determining the taxable base for calculating the VAT due.
This regime applies to Spanish travel agencies, tour operators and, in general, any entrepreneur or professional in Spain when they meet the following requirements:
- They act in their own name in respect of travellers.
- They use services or goods supplied and rendered by other entrepreneurs or professionals in carrying out the trip.
This special Spanish tax scheme does not apply when own means of transport or hotel and catering services are used. But if on the journeys are made using partly own and partly other people´s means, this special scheme only applies to services provided by other people´s means.
Accommodation or transport services provided jointly or separately and, where appropriate, also provided with other complementary services, shall be considered to be journeys.
Taxes to be taken into account at the time of running a travel agency in Spain.
- VAT in Spain charged on supplies of services:
There is no obligation to include the VAT in Spain separately on the invoice, it is understood to be included in the price and, therefore, will not be deductible by the customer. But as from 1st of January 2015, if the business customer so requests, it is possible to opt for the general VAT system.
The taxable amount will be the gross margin of the travel agency.
- Spanish VAT deductible on purchase of services:
It shall not be deductible when it corresponds to purchases of goods and services made for the purpose of the journey which are of direct benefit to the traveller.
The rest of the VAT in Spain is deductible.
- Exempt transactions:
- Transactions are exempt from VAT where the supplies or services are made outside the European Union.
- When the journey takes place in different countries, inside and outside de Union, only that part of the journey which takes place in the third countries is exempt in proportion to the costs incurred in each of them.
- Invoicing obligation in Spain:
Entrepreneurs and professionals covered by this special regime are not obliged to state the amount charged separately on the invoice, and it shall be understood to be included in the price.
At the Spanish invoice must include the mention: “special regime for travel agencies” – “régimen especial de las agencia de viajes”
If you wish to know more about the Tax regime for travel agencies in Spain, keep reading here.
If you need advice on the tax regime for travel agencies in Spain, or if you need any tax or legal advice, do not hesitate to contact the Welex team of lawyers and accountants in Spain.