The European Commission has decided to defer eight member states to the EU Court of Justice: France, Spain, Italy, Greece, Portugal, Poland, the Czech Republic and Finland. The nations are being brought to court for failing to correctly implement EU regulations on VAT regarding travel agencies. The decision regards some particular dispositions for travel agencies that sell package deals, the so-called ”special VAT margin regime”. These regulations simplify the application of VAT when the elements of these package deals are located in several different countries with different VAT regulations. The regime is not applied to travel agencies when they sell package vacations to other companies, particularly to other travel agencies for resale. The eight summoned members states have not applied the special regime correctly, allowing it to be applied on sales between travel agencies as well. This situation has led to unfair competition between the various travel agencies, where some agencies pay more tax than others.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
