EU Public Consultation on VAT scheme for Travel Agents

The Commission has launched a public consultation on the VAT Scheme for Travel Agents.

The Travel Agents Scheme, which is set out in Articles 306 to 310 of the VAT Directive (transposed via the Fourteenth Schedule to the Malta VAT Act), was originally introduced due to the special nature of the travel industry, in recognition that in this sector it may be  difficult to apply the normal VAT rules on the place of taxation, the taxable amount and deduction of input tax due to the complexity and location of the services provided.

The Commission is currently evaluating the travel agents scheme for travel agents and tour operators and has launched a public consultation so as to obtain the views of stakeholders on the functioning of the scheme, for the purposes of this evaluation.

The consultation is intended to gather the views of all stakeholders on how the special scheme meets its objectives (i.e. whether it is still effective) and to which extent existing rules are still relevant and aligned with stakeholders’ needs. The efficiency of those rules is also being assessed, including, identifying potential distortions of competition and the regulatory costs and benefits for businesses taxed under the special scheme.

Stakeholders are invited to contribute to this consultation by filling in the online questionnaire.

The deadline for submission of feedback is 14 September 2020.