- The Court of Justice of the European Union has recently clarified that the purchase of airline tickets and their subsequent resale to final consumers fall within the special VAT regime for travel agencies (TOMS), even when the supply is not accompanied by additional services other than information and consultancy services offered by the travel agency (case C-763/23, Dragoram Tour, ord. 25 June 2024).
- The TOMS allows travel agencies to calculate the VAT taxable base by subtracting the costs incurred, gross of VAT, from the consideration received.
- The Court stated that the sole provision, by a travel agency, of passenger transport services purchased from third-party taxable persons falls within the scope of application of the TOMS regardless of whether such provision is not accompanied by additional services or whether the agency also provides information and consultancy services to its customers.
Source
See also
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- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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