Spain VAT and TOMS Guide for Travel Businesses | Spain Tax Rules Explained

Complete overview of Spain VAT, travel rates, TOMS margin rules, and compliance requirements for inbound and outbound operators.

Detailed VAT and TOMS guide for travel agents, tour operators, and DMCs working in Spain. Understand VAT rates, place of supply, accommodation rules, event services, and margin calculations. Includes TOMS treatment, compliance obligations, and VAT reclaim guidance.

Spain – VAT and TOMS for Travel Businesses

Modern VAT system introduced: 1986 (following Spain’s accession to the European Community)
Standard VAT rate: 21 percent
Reduced rates: 10 percent and 4 percent
Authority: Agencia Estatal de Administración Tributaria (AEAT)

Spain operates one of the most visited tourism economies in Europe. As a result, its VAT rules have well defined hospitality and travel classifications, and it follows the EU’s Tour Operator Margin Scheme (TOMS). Understanding how standard VAT and TOMS interact is essential for travel agents, DMCs, inbound operators, and overseas businesses selling Spain based services.

VAT treatment of travel and hospitality in Spain

Spain applies multiple VAT rates depending on the nature of the supply. For hotels, restaurants, attractions, and transport, correct classification is essential because Spain is strict on documentary requirements and taxable base calculations.

Accommodation

Hotel accommodation, serviced apartments, campsites, and similar lodging fall under the 10 percent VAT rate. This includes room charges and board arrangements such as breakfast if bundled with accommodation.

Room upgrades, resort fees, spa access sold with the room, and parking services directly tied to the stay also follow the 10 percent rate.

Food and beverage

Restaurant and catering services are generally taxed at 10 percent, including meals served in hotels. Alcoholic drinks supplied in restaurants are also subject to 10 percent, except in cases where premium alcohol may be treated separately under special regimes.

Passenger transport

Domestic passenger transport by road, rail, cable car, ferry, or air normally qualifies for 10 percent VAT. However, international transport services can be exempt or outside the scope depending on the route and place of supply.

Tours, activities, attractions, guides

Guided tours, cultural experiences, attraction tickets, and activity based services are typically taxed at 21 percent, unless they fall under a reduced classification such as certain cultural events or municipal attractions.
Event management, corporate hospitality, and incentive programmes also generally fall under 21 percent.

DMC and travel agency services

A Spanish DMC delivering on the ground services normally charges VAT at the rate applicable to the underlying supply. For example, a DMC fee for arranging hotels is 10 percent, while a fee for event planning is 21 percent unless it qualifies for a cultural exemption.

Place of supply considerations

Spain follows EU rules for place of supply. These determine whether Spanish VAT applies to non-Spanish businesses.

Accommodation is always taxed where the immovable property is located. Any booking or facilitation of Spanish hotel rooms triggers Spanish VAT.

Event services (conferences, incentives, exhibitions) are taxed where the event takes place. This applies to both B2B and B2C.

Cultural, entertainment, educational, or sporting activities are taxed where performed.

Restaurant and catering services are taxed where the service is physically carried out.

For foreign travel companies, these rules mean that if the service is consumed in Spain, Spanish VAT generally applies even if the customer is located outside Spain.

Spain and the Tour Operator Margin Scheme (TOMS)

Spain applies TOMS to travel agents and tour operators who buy in and sell on travel services as principal. TOMS is not optional and applies regardless of whether the customer is private or corporate.

When does TOMS apply

TOMS applies when the operator:

• buys in travel services from suppliers
• sells a package or a single travel component to a customer
• acts as principal rather than intermediary
• supplies travel services consumed within the EU

For most multi-component Spain based itineraries, TOMS is the default regime.

What is taxed under TOMS

TOMS taxes only the margin between the selling price and the cost of the bought-in travel services. Input VAT on bought-in components cannot be reclaimed when those components are used in a TOMS supply.

Common bought-in services that fall under TOMS include:

• hotels and accommodation
• local transport
• guides and excursions
• restaurant services supplied as part of a package
• incentive programme components

Activities outside TOMS

The following do not fall under TOMS:

• services where the travel agent acts as a pure intermediary
• designated agency commissions
• event management fees charged separately from bought-in travel services
• supplies sold outside the EU
• consultancy or planning services where no bought-in travel component exists

Intermediary services follow normal VAT rules, and the place of supply depends on whether the client is B2B or B2C.

VAT rate under TOMS

The margin is taxed at the standard 21 percent rate irrespective of the VAT rates on the underlying components.

Zero rating and non-EU travel

When the travel takes place outside the EU, the TOMS margin can qualify for zero rating. For Spain based operators selling non-EU itineraries, the margin may be zero rated if all travel occurs outside the European Union.

Reporting and compliance

Spain requires consistent record-keeping for all travel operators, including:

• itemised costs of bought-in services
• allocation of direct vs indirect costs
• documentation proving where services were consumed
• clear evidence of whether the operator acted as principal or intermediary

Because TOMS removes the ability to recover input VAT, correct classification of each component is essential to avoid unnecessary VAT leakage.

Spain also enforces mandatory electronic invoicing for B2G transactions and is moving toward structured e-invoicing for B2B under the future Spanish eFactura system (planned rollout under Ley Crea y Crece).

Foreign travel companies operating in Spain

Foreign companies delivering Spain based services may be required to register for Spanish VAT if they act as principals and supply taxable services within Spain that fall outside TOMS.
When acting under TOMS, foreign operators are not required to register for VAT in Spain, but they also cannot reclaim VAT on costs related to EU travel.

When operating as intermediaries, foreign businesses may have to charge Spanish VAT on commissions depending on the place of supply rules.

Inbound DMCs must meet strict invoicing and documentation requirements, including Spanish language tax invoices and correct VAT rate application.

VAT reclaim position

VAT incurred on bought-in components used for TOMS supplies is not recoverable for any operator, whether Spanish or foreign.

Where reclaim is possible on non-TOMS services, businesses should follow the EU 13th Directive reclaim mechanism for non-EU companies or the EU 8th Directive for EU established businesses.

Full details are available on our VAT Reclaim page, which explains eligibility, deadlines, documentation requirements, and country specific refund limitations across Europe.

SII (Immediate Supply of Information)

Spain operates a real-time electronic VAT reporting system known as Suministro Inmediato de Información (SII). Certain businesses are legally required to submit invoice data electronically to the Spanish Tax Agency (AEAT) within four calendar days of issuing or receiving an invoice.

Who must comply with SII

The following are automatically required to use SII:

• Large companies with turnover above EUR 6 million
• Businesses registered in REDEME (the monthly VAT refund regime)
• VAT groups (Groups of Entities regime)

Any business voluntarily opting in to monthly VAT filing can also choose to adopt SII.

What must be uploaded

SII does not involve uploading a PDF invoice. Instead, it requires supplying structured invoice data from the company’s accounting or ERP system, including:

• Issue date
• Supplier or customer Spanish VAT number
• Taxable base
• VAT rate
• VAT amount
• Type of supply (domestic, intra-EU, import, export, TOMS exceptions where applicable)
• Special regimes where relevant

Travel businesses using standard VAT must upload all outgoing invoices and incoming invoices that carry recoverable VAT.

Interaction between SII and TOMS

TOMS itself does not require invoice-level reporting through SII because:

• TOMS supplies are not documented with VAT invoices showing VAT
• The margin is reported directly in the VAT return rather than as an invoice-based tax

However:

• Any supplies a travel business makes outside TOMS must be reported through SII
• Any input VAT claimed on non-TOMS activities must be supported by SII entries

If a travel company falls within SII due to turnover or monthly refund status, it must maintain parallel reporting:
• TOMS declarations through the VAT return
• Standard VAT supplies through SII
• Input VAT uploads through SII where reclaimable

Impact on foreign companies

Foreign companies without a fixed establishment in Spain are not automatically included in SII, unless:

• They register voluntarily for monthly refunds
• They form part of a Spanish VAT group (rare for travel)
• They exceed the EUR 6 million threshold through Spanish taxable supplies

Most foreign travel operators under TOMS do not fall into SII, but DMCs, event management companies, and foreign suppliers with standard-rated Spanish supplies may be caught.

Antravia helps

Antravia supports travel businesses with:

• VAT classification for Spain based travel supplies
• assessment of whether an activity falls under TOMS or standard VAT
• modelling VAT margin impact on multi-component Spain itineraries
• identifying VAT leakage caused by incorrect rates or documentation
• compliance checks for DMCs, event planners, and foreign organisers
• EU reclaim guidance and cross-border VAT structuring

Not based in Spain but looking for Spanish VAT Reclaim? Click here

Not sure where to start? Contact Antravia for a free Consultation

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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