If you own a travel agency or are a tourism professional acting as an intermediary, it's crucial to master the Special Scheme for Travel Agencies (known as REAV in Spain). This scheme simplifies VAT settlement but has specific features you must know to avoid errors with the tax authorities. As tax experts, we explain how to apply it correctly.
What is the Special Scheme for Travel Agencies?
The REAV is a mandatory VAT scheme that applies to travel agencies when they act in their own name towards the customer but use goods and services from third parties (like hotels, airlines, or transport companies) to provide the complete service. Instead of applying VAT on the total sales price, taxation is calculated on the agency's profit margin for each transaction.
This scheme applies to sales to private travelers. If the client is another company or professional for their business activity, the agency can choose to apply the general scheme.
The Key: Calculating VAT on the Margin
The main difference from the general scheme is the calculation of the taxable base. In the REAV, the input VAT from purchases and the output VAT on the final sale to the customer are not broken down. The calculation is done on a transaction-by-transaction basis as follows:
1. Calculate the gross margin: This is the difference between the total sales price (VAT included) paid by the customer and the total cost of services purchased from third parties (VAT included).
* *Gross Margin = Selling Price (VAT incl.) - Cost of Services (VAT incl.)*
2. Determine the taxable base: To get this, you divide the gross margin by 1.21 (assuming a general VAT rate of 21%).
* *Taxable Base = Gross Margin / 1.21*
3. Calculate the VAT amount to be paid: The general rate of 21% is applied to the taxable base.
* *VAT to be paid = Taxable Base * 0.21*
This amount is what you will declare on Form 303.
Invoicing in the REAV and the Arrival of VeriFactu
One of the most important rules is that invoices issued to private customers under this scheme must not show a separate VAT amount. The invoice should state the total price and a note such as "VAT included" or "Special scheme for travel agencies".
With fiscal digitalization, it's essential to be prepared. The verifiable invoicing system VeriFactu will be mandatory from July 1, 2027, for freelancers and micro-enterprises. This means all invoicing must be done with software that complies with the Spanish Tax Agency's (AEAT) requirements, ensuring the integrity of the records. To stay up-to-date with deadlines and requirements, it's crucial to consult the complete guide on VeriFactu 2027 deadlines.
If your agency combines intermediation (REAV) with selling its own services (for example, a guided tour with your own staff), you must apply the general scheme for the latter, issuing invoices with the VAT broken down. Managing this duality requires organization and, preferably, a good invoicing system. Having the best VeriFactu software for freelancers will not only ensure compliance but also simplify the management of complex schemes like this one.