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EU Commission Launches Consultation on VAT Rules for Travel Agents and Passenger Transport

    The European Commission has launched a 12-week public consultation to gather stakeholder opinions on modernizing VAT rules for the travel and tourism sectors. The initiative aims to address outdated regulations causing market distortions and hindering competitiveness. Stakeholders, including businesses, member state authorities, and citizens, are invited to share their views on proposed reforms to the special VAT regime for travel agents and passenger transport services taxation. The consultation focuses on two main issues: the special VAT regime for travel agents and VAT rules for passenger transport. Participants can respond via an online questionnaire or submit position papers through the Commission’s “Have Your Say” platform. The consultation will remain open for 12 weeks, with additional targeted discussions planned. The travel and tourism sectors contribute about 10% to the EU’s GDP and employ millions, mainly SMEs. Modernizing VAT rules is crucial for ensuring fair competition, reducing administrative burdens, and aligning taxation with digitalization and sustainability goals. The consultation results will inform a legislative proposal by the end of 2026.

Source: taxheaven.gr

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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