- Legislative initiative expected by end of 2026 considering received contributions
- European Commission launched public consultation on VAT rules for travel and tourism sector on July 24
- Aim is to develop a legislative initiative by the fourth quarter of next year
- Sector generates about 10 percent of GDP and is recovering post-pandemic
- Current rules are outdated due to increased international travel, competition, and digitalization
- Market distortions and competitive advantages for third countries are present
- Non-uniform application of rules has required EU Court of Justice intervention
- Urgent need for updated principles to match current and future developments
- Previous proposals in 2002 and 2003 were withdrawn in 2014
- A study in 2017 and a working document in 2021 assessed the current state and proposed solutions
- Reform aims to make the sector more competitive, digitalized, sustainable, resilient, and green
- Public consultation seeks input from stakeholders
- Consultation also covers VAT regime for passenger transport services, which is complex and burdensome for SMEs
- Initiative aims to address issues related to TOMS and VAT for transport services
Source: eutekne.info
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.
