ECJ decides on VAT taxation of in-house transport services provided by a travel agent

Michael Wukoschitz's picture

In its judgement of 25 Oct. 2012 in case C-559/11, the Court of the European Union has held that Articles 306 to 310 of VAT Directive must be interpreted as meaning that where, in the context of a tourist service provided to a tourist in return for an all-inclusive price imposed in conformity with those provisions, a travel agent provides to that tourist an in‑house transport service which forms part of that tourist service, that supply of services is subject to the normal VAT regime, inter alia in relation to the tax rate, and not to the special VAT scheme applicable to transactions carried out by travel agents. In accordance with Article 98 of that directive, if the Member States have provided for a reduced rate of VAT for transport services, that reduced rate applies to that supply of services.

See full text of judgement here>>.

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