The special scheme for travel agents and tour operators was designed as a simplification measure to avoid multiple registration obligations for businesses in this sector and to allocate VAT revenues to the Member State of consumption. However, the scheme raises a number of practical difficulties, largely due to the different interpretations of the scheme in the Member States, which makes it difficult for taxable persons to manage. In this article, the author discusses some of these practical difficulties and points out what he believes may be possible future solutions.
Source IBFD (subscription needed)
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