As of January 2015, the Spanish tax Law allows VAT exception in organization of Meetings and Corporate Events including a number of services and booked entirely through a DMC.
These tax Regulation for Corporate events have to be a B2B transaction involving a “complex organizational service”. This covers nearly all events that require hotels, transfers, meeting room and restaurants. Depending on the service you save between 10% and 21% on the current prices if you book for example through the DMC “Incentives Barcelona”.
This Tax Regulation for Corporate Events helps the Spanish market to be more competitive and attractive. The Spanish DMC can choose to apply VAT based on a General Regime or the Travel Agency Special Regime. If the services are subjected to Spanish VAT, the foreign customer who has paid VAT may request a refund through a procedure in the tax administration of his/her country. All VAT amounts will be detailed in the final invoice.
If the DMC chooses to invoice with the Travel Agency Special Regime, the VAT is included in the invoice and the company cannot request a refund. All services provided to individual travelers (although booked through an agency) or services invoiced to a private person, will always be considered Travel Agency Special regime.
Please note that each project has to be analyzed individually if it complies with the necessary conditions to benefit from the tax deduction. Services contracted directly to the final providers will not have this tax deduction.