Sustainable Tourism Law

THE TAXATION OF SUSTAINABLE TOURISM IN SPAIN 345 9% and 18% (the latter is the general one), while in Madeira it’s 5%, 12% and 22% (the latter is the standard or general rate) 17 . Naturally, this is of the utmost importance, since the divergence of types can influence the destination chosen by tourists who seek the same quality for the most profitable or economical option. Needless to say, where the effect of the diversity of tax rates is best observed is in the border areas, where the transfer of subjects from one sovereignty to another is frequent, seeking more profitable goods and services. In this sense, States play with taxation as a tourist attraction, therefore tourist services, particularly the most important ones, are usually those linked to restoration and lodging, which are usually taxed with reduced tax rates 18 . This is the case in at least all countries in southern Europe, so it seems that this trend should continue to be maintained so that the sector remains competitive, or at least remains at the highest levels of tourism competitiveness 19 . The unification of types, which we can consider desirable, is a distant mirage in the horizon 20 . According to the document “VAT rates applied in the Member States of the European Union”, of the European Commission, in effect as of January 1, 2017 21 , for the main services usually considered as tourist services -which are passenger transport, accommodation in a hotel and restaurants- the tax rates that are levied are: Transport of passengers: BE BU RC DI AL EST IR GR ES FR CR IT Ch LE LI 6 0 20 15 0 Ex 25 7 19 20 0 Ex 24 10 10 25 10 Ex 5 9 12 Ex 9 21 17 Vid . VAT rates applied in the Member States of the European Union, 2017, https://ec.europa.eu/taxation_ customs/sites/taxation/files/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf. 18 SCANU, G.: “La tassazione sui flussi turistici tra fiscalità locale e competitività: alcune esperienze europee a confronto” Rivista di Diritto Tributario , fasc. 3/2009, p. 339, notes that in countries where the type of I.V.A. is higher, the number of overnight stays has receded or the growth is more modest. 19 Vid. CUBILES SÁNCHEZ-POBRE, P.: “¿Afectan las últimas modificaciones relativas al tipo en el Impuesto sobre el Valor Añadido al Sector Turístico?”, Cultura, desarrollo y nuevas tecnologías: VII jornadas de investigación en turismo , 2014, p. 247-262. 20 The work La Fiscalidad del Turismo. Hacia un Justo Equilibrio , p. 9, It concludes that the diversity of differential VAT rates in Europe affects the competitiveness of tourism businesses in the Member States. Thus, the necessary unification of rates is supported whenever “... promotes the development of tourism in all member states”. 21 It can be consulted in https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/ taxation/vat/how_vat_works/rates/vat_rates_en.pdf. The abbreviations we use are: BE: Belgium; BU: Bulgaria; RC: Czech Republic; DI: Denmark; AL: Germany; EST: Estonia; IR: Ireland; GR: Greece; Is Spain; FR: France; CR: Croatia; IT: Italy; Ch: Cyprus; LE: Latvia; LT: Lithuania; LU: Luxembourg; HU: Hungary; MT: Malta; PB: The Netherlands; AU: Austria; POL: Poland; PT: Portugal; RU: Romania; ESLOV: Slovenia; ESLV: Slovakia; FI: Finland; SU: Sweden; and UK: United Kingdom. The abbreviation “Ex” means exemption.