- The CJEU held that the special VAT margin scheme for travel agents can apply even to promotional coach excursions partly financed by sales of goods, as long as the business supplies travel services in its own name and uses purchased travel inputs from other taxable persons.
- The scheme is not limited to traditional travel agents; what matters is the nature of the service and the use of third-party services such as transport or accommodation.
- The Court confirmed that where an excursion qualifies as a travel service under the special scheme, the normal VAT rules on place of supply, taxable amount, and input VAT deduction do not apply.
- A negative margin under the travel-agent scheme does not create a right to a refund of input VAT.
Source: assets.kpmg.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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