Travel VAT news - EU Proposals for platforms involved in Travel services
24.11.2023
In our last newsletter we reminded readers that the EU Commission is proposing to introduce, from January 2025, “deemed supplier” VAT rules for platforms that facilitate EU short stay accommodation and passenger transport supplies, primarily by unregistered-for-VAT providers.
It has now been confirmed that the decision on this will not be made this year after all and, if the initiative is approved, the implementation will be delayed beyond 2025.
The possible extension of the EU One Stop Shop VAT simplification scheme to include input tax recovery on costs is similarly postponed until 2026 at the earliest and EU obligations around digital reporting (DAC-7) have also been delayed.
Whilst delays are frustrating, it does provide for more time to raise awareness on these planned changes across the Travel related sector and to encourage operators to be prepared on the VAT front for their impact.
If our VAT Travel sector specialists can be of assistance then do not hesitate to get in touch - IndirectTax@Xeinadin.com
This note is for information only and specific advice should always be sought.