- 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.
Source International Tax Review
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
