- The ECJ Advocate General issued an opinion on German VAT rules for travel agents organizing excursions with goods sales.
- The case involved a company whose excursion fees did not fully cover transportation costs, with the remainder covered by goods sales revenue.
- German tax authorities applied the special VAT regime for travel agents, denying input VAT deductions on uncovered transportation costs.
- The Advocate General opined that the Sixth Council Directive 77/388/EEC does not apply in such cases where transportation costs are partly covered by goods sales, making those costs part of the goods’ price.
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.
Latest Posts in "European Union"
- Briefing Document & Podcast: VAT in the Digital Age (ViDA) – Digital Reporting Requirements
- VAT and Transfer Pricing: Lessons for Multinationals (ECJ Cases: Weatherford, Arcomet, Högkullen, Stellantis)
- Transfer Pricing, VAT and Transactions Between Related Entities: Key Principles from CJEU Case Law (Stellantis Portugal, C‑603/24)
- EU ViDA Implementation Strategy: Six Implementing Acts Shaping DRR, VIES and OSS Roll-Out (2027–2030)
- Comments on ECJ C-603/24 (Stellantis Portugal) – Transfer pricing and VAT: Court confirms in Stellantis that not every true-up constitutes a service
