Tour operator margin scheme for travel services in the B2B sector
16.05.2019 - According to the previous wording of Section 25 UStG, the Tour Operator Margin Scheme and the special place of supply provision for travel services only applied to travel services that are not intended for the enterprise of the recipient.
In infringement proceedings against Germany as well as other states, the European Court of Justice (ECJ) decided that this restriction to the B2C sector was not in line with the EU VAT Directive. The Federal Fiscal Court (BFH) had adopted this jurisdiction in its judgement of 13 December 2017 (XI R 4/16). This created a choice for entrepreneurs either to apply Section 25 UStG word-for-word or to invoke EU law. The Annual Tax Act 2019 is intended to adapt Section 25 UStG to EU law and extend its application to the B2B sector.
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