ECJ Confirms Margin Scheme for Loss-Making Coffee Trips

• The ECJ held that “coffee trips” can fall under the Tour Operator’s Margin Scheme even if the transport service is continuously provided at a loss and is subsidized by goods sales.
• The coach excursion was treated as an independent travel service, not merely an ancillary service to the sale of goods, because participants had an independent interest in the trip.
• A negative margin does not exclude application of the Tour Operator’s Margin Scheme; what matters is that travel services are bought in from third parties and supplied in the operator’s own name.
• Input VAT deduction/refund on the purchased transport services remains denied under the special tour operator rules, even where the margin is negative.

Source: kmlz.de

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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