The German Ministry of Finance (MOF) announced in February 2021 (through a circular dated 29 January 2021) that it has taken the position that the special VAT scheme for travel agents (also known as the tour operator margin scheme (TOMS)), as set forth in section 25 of the German VAT Act and articles 306 to 310 of the EU VAT directive, does not cover transactions by travel agents that have not established their business within the EU and do not have a fixed establishment in the EU (“non-EU travel agents”). This position could eliminate competitive advantages that non-EU travel agents have enjoyed in Germany when buying and reselling travel services. Although the 29 January circular provides that this position would apply as from 1 January 2021, the MOF announced through a circular dated 29 March 2021 that it will not object to the application of the TOMS by non-EU travel agents up to 31 December 2021.
Source Deloitte
