The European Commission plans to evaluate the special VAT scheme applicable to travel agents and tour operators in 2020, according to a roadmap published on Tuesday 4 February.
In 1977, when the sixth VAT Directive was adopted, a special scheme was introduced for travel agents and tour operators because of the specific nature of the profession.
These businesses thus benefit from simplified origin-based taxation, by paying VAT on their profit margin in the Member State where they are established. This ‘margin scheme’ permits them to operate in all other Member States without having to register or declare VAT.
These rules have not been changed for more than 40 years and the Commission considers that it is time to assess whether there is still a need to grant travel agents and tour operators a special VAT scheme.
The assessment will include the possible impact on the level playing field within the EU and vis-à-vis economic operators located in non-Member States, the Commission indicated.
The Commission has already carried out in November 2019 a targeted consultation of Member States in the Group on the Future of VAT. It will launch a wider public consultation in March 2020. (Original version in French by Marion Fontana)