Sustainable Tourism Law

THE TAXATION OF SUSTAINABLE TOURISM IN SPAIN 347 LU HU MT PB AU POL PT RU ESLO ESLV FI SU UK 17 27 18 21 20 23 23 19 22 20 24 25 20 VAT undoubtedly affects tourism demand. The sector of the tourist industry argues, therefore, that when designing the fiscal framework of tourism, one must take into account this factor, which is connected with the fragility of tourism companies, many of them small and medium enterprises, some of them family companies, subject to various trends, which mutate over time. Although tourism is an expanding sector, there are many challenging experiences down the road 23 . The base of the tourism sector in the Spanish economy, essentially of the hotel and restaurant industry, is what leads us to express a prudent attitude towards any phenomenon that affects them and that supposes a rise in the VAT 24 rates and the introduction of new tributary figures, as special tributes, that may entail, in a broad sense, an economic over-imposition. The fact that tourist services, such as the lodging and passenger transport service, are subject to a reduced rate in theVAT, is not justified for the performance of distributive justice purposes; that is, its foundation does not lie in the principles of economic capacity and solidarity. Its reason lies in the mere economic convenience, as a means of stimulus or economic dirigisme, and also by the importance of the sector as a manifest pressure group, with wide influence in different governments and political groups. But the OECD constantly defends that a large part of the benefits subject to the reduced rate go to the general base, recognizing that this would be detrimental to the tourism sector, recommending as a countermeasure that social contributions decrease 25 . As others have already pointed out, it is important to highlight the fact that benefits, usually tourism 23 The study warns La Fiscalidad del Turismo. Hacia un Justo Equilibrio , op. cit., p. 7-14. The tourism industry is comprised, in large part, by small operators, highlighting the high rates of bankruptcy, the highest in the set of economic sectors; where, although there are companies of a certain magnitude, such as hotels, it is pointed out that the sector is basically composed of medium and small companies. The study highlights the fragility of tour operators, based on the large number of very small operators, on trends and the perishable nature of the tourism product, on the unpredictable demand, and on the seasonality of most destinations and markets (p. 15). 24 The Committee of Experts for the Reform of the Spanish Tax System, Madrid, February 2014, p. 294 to 304, recommends that only remain as subject to the reduced rate of 10 percent the operations located in art. 91. One, 7th Law of the I.V.A. on deliveries of buildings or parts of them as housing, including parking spaces, the places in art. 91, Two. 2, 1.º on transport of travelers and their luggage and the places in art. 91, Two. 2, 2.º on services of hospitality industry, camping sites and spa, restaurants and, in general, the supply of foods and drinks to be immediately consumed, even if they are made by order of the addressee. 25 https://www.elconfidencial.com/economia/2014-09-08/la-ocde-insiste-en-que-espana-debe-bajar-las-cotizaciones -y-subir-el-iva-reducido_187496/. Also in 2012 the OECD manifested this approach, http://www.comunicatur. info/es/proposta-per-a-pujar-liva-turistic-2/.