Taxation

VAT rates / exemptions

Commission Communication on Future of the EU VAT System sets out the priority actions for the coming years needed to create a simpler, more efficient and more robust VAT system in the EU tailored to the single market.

GEBTA calls for the maintenance of the existing VAT rates / exemptions applicable to certain travel and tourism services.

Special VAT scheme for travel agents

The VAT Directive provides in articles 306-310 a special VAT scheme for travel agents (the so-called margin taxation scheme). In 2002 the Commission has presented a Directive proposal to revise the special scheme.

GEBTA calls on the institutions not to extend the scope of the margin taxation scheme to corporate travel supplies made by TMCs, as this would prevent corporate travel customers to benefit from the reduced VAT rates / exemptions and VAT deduction rules afforded to certain travel services.