After looking at Process Monitor, on the server the report was looking for the same default printer I have on my machine where the report was developed.
Adding this printer to the server the report is served as expected, even though it takes a while. Although this is not the ideal solution it solves the problem.
I think the best option in the future for this is to make sure the default printer selected in the report is the Microsoft XPS Document Writer. To do this go to the report in the designer->Design->Page-Setup and select.