Comments on ECJ C-108/22: When you buy and sell hotel accommodation – it is subject to VAT margin scheme

• Hotel accommodation bought and sold by travel agents in their own name, using supplies from other taxable persons, is subject to the special VAT margin scheme according to Article 306.1 of the VAT Directive. This applies even if no additional services are provided.
• The purpose of the scheme is to avoid difficulties in determining the place of supply, tax base, and right of deduction for services purchased and supplied in different countries.
• The scheme also applies to the mere supply of holiday accommodation leased from another entity, as ruled in a previous case (C-552/17).

Source Pawel Mikula

See also

• ECJ C-108/22 (Dyrektor Krajowej Informacji Skarbowej) – Judgment – Resale of accommodation services fall under the special scheme for travel agents
• Summary of ECJ C-108/22 (Dyrektor Krajowej Informacji Skarbowej) – Resale of accommodation services fall under the special scheme for travel agents
• C-552/17 (Alpenchalets Resorts) – Judgment – Provision by a travel agency of a holiday residence rented with additional benefits each constitutes a single service under TOMS

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