- The European Commission is considering applying VAT on travel agencies and passenger transport, including air travel.
- A public consultation has been opened to discuss this proposal.
- Currently, air and maritime transport have zero VAT rates, while trains and buses have reduced rates.
- The commission notes that these low rates result in minimal VAT revenue, about 1.3% of the EU’s total VAT collection.
- The current VAT rates do not account for environmental impact, leading to potential distortions in competition across transport modes.
Source: news.bloombergtax.com
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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