Germany has received a reasoned opinion (request) from the European Commission to bring its Tour Operators Margin Scheme (TOMS) into line with the EU VAT Directive.
TOMS allows tour operators, buying and selling holiday packages to declare VAT only on the profit margin element of their trade. This simplification helps to eliminate the need to VAT register across all the countries where they operate. The request for a change is based on the 2013 European Court of Justice’s ruling that such schemes must apply to businesses customers, as will as private individuals.
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