- 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.
Latest Posts in "Germany"
- Germany Plans Mandatory Digital Cash Registers and Receipts from 2028
- BFH Refers Automated Plant Permanent Establishment Question to EU Court
- Germany Plans Digital Reporting System for 2030
- Germany Electronic Invoicing Deadlines: Key Dates and Requirements
- VAT Input Tax Deduction for Development Costs of Commercial Land Parcels
