Among the intended changes for 2015 in the Spanish tax law by the bill currently at Parliament, there is the adaptation of the special travel agency regime to the …
Among the intended changes for 2015 in the Spanish tax law by the bill currently at Parliament, there is the adaptation of the special travel agency regime to the judgment of the European Court of Justice of 26 September 2013 (C-189/2011).
Besides eliminating those sections held to be contrary to the Directive by the judgment, the bill contemplates the possibility, on a case by case basis and as long as the client is a taxable subject, that the travel agency may renounce to the special regime (which involves the application of VAT on the margin of the agency, the inability to deduct the input VAT and the lack of the obligation to charge the VAT separately) and, instead, choose to be taxed following the general regime (i.e. application of VAT on the total price, with the possibility of deduction of input VAT and the charging of the VAT separately). The specific terms of the exercise of this option would be subject to further regulatory development.
We should note that, in our opinion, should this amendment be actually approved, it would be difficult to fit the same in the VAT directive and is likely to be a source of future conflicts with other EU Member states and the Commission.
Moreover, it is to be recalled that no change is contemplated as regards the special scheme for travel agencies as regards the IGIC, applicable in the Canary Islands instead of VAT, which thus would maintain its regulations now virtually identical to the one in VAT that is being changed.
Manuel Pérez de Algaba
IVA CONSULTA
