- Aviation and shipping in Europe benefit from major VAT exemptions, making them largely untaxed despite high emissions.
- EU governments lose billions in revenue annually due to these exemptions, with aviation alone creating a €29 billion VAT gap in 2024.
- International maritime passenger transport and many domestic ferry/cruise services are also exempt from VAT, while cruises are misclassified for tax purposes.
- Rail transport is taxed more consistently, putting it at a competitive disadvantage, but removing VAT on international rail would have minimal revenue impact.
- The current VAT regime is unfair, encourages high-emission travel, and deprives governments of funds; recommendations include ending VAT exemptions for aviation and shipping and exempting international rail.
Source: cleantechnica.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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