Changes to European VAT rules
In this video, Martin Alcock discusses changes to European VAT rules since the UK left the EU in January 2021. Watch to find out more.
Updated 14 Dec, 2022
22 Sep, 2022
1 min read Posted by
Update: The changes proposed for 2023 that are described in this video have been postponed for 12 months. We will share more information when it’s available. To get the latest updates, please join our newsletter or follow us on LinkedIn.
Until the update on 12 December 2022, German tax authorities had confirmed VAT would be levied on sales of German travel services made by non-EU businesses from January 2023. You would have likely needed to register, account for and settle VAT locally. Croatia implemented a similar ruling last year, and there are rumours other EU member states may follow.
In this video from our September Travelcast, TTC Director Martin Alcock discusses these changes.
Haven’t got time to watch the video? Here are the highlights:
If you would like help understanding European VAT, please get in touch with our experts.
- The way VAT applies to tour operators changed when the UK left the EU in January 2021.
- The Tour Operator’s Margin Scheme (TOMS) was a simplification measure for cross-border sales in Europe.
- From January 2023, UK travel businesses will need to register, account for and settle VAT locally if they operate in Germany.