Travel agencies in Spain operate under a special tax framework that differs from most other service businesses. If you’re self‑employed and selling travel packages, flights, hotels, excursions, or combined services, you must understand how VAT, IRPF, and administrative obligations work.

1. VAT Rules for Travel Agencies (REAV – Régimen Especial de Agencias de Viajes)

The Special VAT Regime applies when you sell travel packages that include services provided by third parties (hotels, airlines, transport companies, tour operators).

How VAT works under REAV

• You do not charge VAT on the full price of the trip.
• You calculate VAT only on your margin.
• Your margin is: Margin = Selling price – Cost of travel services purchased from suppliers
• VAT rate applied to the margin: 21%

Important consequences

• You cannot deduct VAT from supplier invoices (flights, hotels, etc.).
• You must keep separate accounting for:
  • Packages under REAV
  • Services billed under general VAT rules (e.g., consulting, pure commissions)

When REAV does NOT apply

Use general VAT rules when:

• You act only as an intermediary (charging a commission).
• You sell services not linked to travel packages.
• You invoice professional services (consulting, planning, marketing).

In these cases, you charge 21% VAT on your commission or service fee.

2. IRPF for Self‑Employed Travel Agents

Your IRPF is based on your net profit, not on your sales.

IRPF calculation

$$\text{IRPF Base}=\text{Income}-\text{Expenses}$$

Deductible expenses include

• Supplier invoices
• Office rent
• Software subscriptions (booking systems, CRM)
• Marketing and advertising
• Professional insurance
• Accounting fees
• Travel agency licensing costs

Quarterly IRPF payments

You must file Modelo 130 every quarter unless:

• 70% of your income is subject to withholding (rare for travel agencies)

3. Administrative Obligations for Travel Agencies

Running a travel agency in Spain requires more than just tax compliance. You must meet specific administrative and regulatory obligations depending on your region.

Key obligations

• Register your activity under IAE code 755 (Agencias de Viajes).
• Obtain the regional travel agency license (varies by autonomous community).
• Maintain:
  • Customer contracts
  • Supplier agreements
  • Travel insurance policies
  • Complaint forms (hojas de reclamaciones)
• Use a booking management system that keeps:
  • Supplier costs
  • Customer invoices
  • Margins for VAT calculation
  • Travel documentation

Accounting requirements

You must keep:

• A separate ledger for REAV operations
• A general ledger for non‑REAV operations
• Quarterly VAT and IRPF filings
• Annual summaries (Modelo 390, Modelo 100)

4. Practical Example

A client buys a travel package for €1,000. Your supplier costs (hotel + flight) are €800.

• Margin = €1,000 – €800 = €200
• VAT = 21% of €200 = €42

You invoice the client €1,000 total, and internally calculate €42 VAT on your margin.

5. Final Thoughts

Travel agencies operate under one of the most complex tax regimes in Spain. Understanding the REAV system, keeping clean accounting records, and separating commissions from package sales is essential to avoid costly mistakes.

Call to Action

If you’re self‑employed and running a travel agency in Spain, make sure your VAT and IRPF are structured correctly.

Book a tax review to ensure your margins, invoices, and quarterly filings comply with Spanish regulations.