Brussels, 24/09/2015 (Agence Europe) - On Thursday 24 September, the European Commission decided to send a reasoned opinion to Germany, to ask it to change its VAT legislation as regards the application of the specific regime for travel agencies.
This regime allows travel agencies to set a 'price margin' as a VAT calculation base, corresponding to the difference between the total amount, net of VAT, to be paid by a traveller and the real cost borne by the agency. Under German law, the margin regime applies only to travel services provided to final private users and allows agencies to set a single profit margin for all package travel services provided within a tax period.
In 2013, in a judgment against Spain over its application of the same regime, the Court of Justice of the EU argued that this particular scheme could apply to all clients, including businesses, not just private travellers. Additionally, the agency must calculate the margin for each travel service and is not permitted to carry out an overall calculation of margins for the purposes of VAT for each tax declaration period. Germany now has two months to respond, or the case could be referred to the Court. (Original version in French by Élodie Lamer)