VATupdate
VAT

EU infringement proceeding regarding special margin scheme for travel agents

The margin scheme is a special VAT provision for travel agents. It regulates the taxation of travel services a travel agent provides in its own name but are for the account of third parties.

To date, the margin taxation scheme has only been applicable in Austria if tour operators have provided such travel services directly to travellers (business-to-customer (B2C)), but not for travel services provided to business customers (business-to-business (B2B)).

Source: BDO