In a decision of 20 June 2024, the Supreme Tax Court asked the ECJ for a preliminary ruling as to whether the margin taxation for tour operators and travel agents must also be applied in a case of „bus excursions“ organized by a company with the intention of promoting the sale of its goods.
In a most current circular, the Federal Finance Ministry has commented on the VAT situation for the provision of access to airport lounges as in contrast to normal travel services.
The PwC VAT Newsflash deals with the overhaul of the provisions of the German VAT Application Guidelines about the VAT treatment of travel services, following an amendment of the respective provision of the German VAT Act and considering the latest case law.
The ECJ has held that the sale of opera tickets by a travel agent in isolation is unconnected with a journey and therefore to be charged to VAT as a normal trading transaction.
