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Request for derogation for the travel agent margin under TOMS

Denmark requested an authorisation to apply a measure derogating from Article 308 of the VAT Directive. In accordance with Article 395(2) of the VAT Directive, the Commission informed the other Member States by letter dated 10 March 2020 of the request made by Denmark. By letter dated 11 March 2020, the Commission notified Denmark that it had all the information it considered necessary for appraisal of the request.

As a general rule, the taxable amount under the special scheme for travel agents, according to Article 308 of the VAT Directive, is the travel agent margin, that is to say, the difference between the total amount, exclusive of VAT, to be paid by the traveller and the actual cost to the travel agent of supplies of goods or services provided by other taxable persons, where those transactions are for the direct benefit of the traveller. The purpose of the derogation requested by Denmark is to lay down a rule determining the cost of passenger transport that has to be taken into account when calculating the travel agent’s profit margin, in case there are parties in the chain of transactions that are closely linked. This cost will be the payment received by the last company in the chain that is not closely linked to the travel agent.

Source: eur-lex.europa.eu

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