Comments on ECJ C-108/22: CJEU decision emphasises need for harmonisation of the special VAT scheme for travel agents

The Court of Justice of the European Union (CJEU) has issued a ruling on the application of the special VAT scheme for travel agents.
The case concerned a Polish entity that resells accommodation services purchased from other VAT-able persons to its customers.
The question referred to the CJEU was whether the special scheme for travel agents can be applied to such an activity.
The court pointed out that if the general place of supply rules applied to the activities usually carried out by travel agents, the VAT management would become practically impossible.
The court argued that the activities involved in reselling accommodation services are identical, or at least comparable, to those carried out by a travel agent or a tour operator.
This ruling is likely to generate controversy among certain EU member states where there is a requirement to be dealing with a truly complex service to apply the special scheme for travel agents.
The revision and harmonisation of the special regime for travel agents at EU level is becoming urgent, as the current regulation presents a number of inconsistencies that are creating concerns for operators in the sector.