The European Commission launched, on Monday 25 May, a public consultation on the operation of the special VAT scheme for travel agents and tour operators to help it evaluate the scheme (see EUROPE 12419/6).
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 the 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 the VAT.
These rules have not 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.
In particular, the information gathered through this consultation should enable the Commission to assess the efficiency of these rules, including the identification of potential distortions of competition as well as the regulatory costs and benefits for businesses taxed under the special scheme.
Interested parties have until September 14 to submit their comments to https://bit.ly/3enTD4j (Original version in French by Marion Fontana)