Opinion of Advocate Bobek in case C‑422/17 (Skarpa Travel), delivered on 5 September 2018
Facts:
1. Skarpa Travel sp. z o.o. w Krakowie (‘Skarpa’) is a travel agent. Skarpa receives payments on account from its customers which may cover up to 100% of the price that they are required to pay. VAT becomes chargeable upon such payment, and on the amount received.
2. At the same time, Skarpa applies the VAT travel agency scheme. Under this scheme, Skarpa charges VAT on its margin. However, Skarpa’s final margin is still unknown when payments on account are received: the exact amounts to be paid by Skarpa to its suppliers may not yet be fixed or may be subject to change.
3. Skarpa and the national tax authority disagree as to the exact moment VAT for travel services becomes chargeable. Skarpa takes the view that VAT becomes chargeable when the margin becomes definitely known. The Minister Finansów (Minister for Finance, Poland) considers that VAT is already chargeable when payment on account is made.
Conclusion:
The AG is of the opinion that:
(1) VAT becomes chargeable on payments on account received by a taxable person supplying travel services, which are taxed under the special scheme for travel agents, at the time when the respective payment on account is received;
(2) At that moment, VAT is to be calculated on the margin, established as the difference between the sum received as payment on account and the corresponding percentage of the overall projected costs for the given transaction.
Source: Curia
