- The ECJ held in Case C‑565/24 that non-traditional excursion organizers, including subsidized “coffee trips,” can fall within the EU’s special VAT scheme for travel agents if they act in their own name and buy-in travel services from third parties.
- The special scheme applies even where the organizer operates at a systematic loss or the overall margin is negative.
- The taxable margin must be calculated separately for each travel service; profitable trips cannot be used to offset losses from other trips.
- A negative margin on an individual travel service does not create any right to an input VAT refund or credit under the special scheme.
Source: vatabout.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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