• New Circular brings unambiguous overview with regard to the special travel agency scheme

New Circular brings unambiguous overview with regard to the special travel agency scheme

Katrien Kegels, Senior Manager |

02 April 2020

On 23 March 2020 a new Circular Letter was published regarding the special VAT scheme for travel agencies and the applicable VAT treatment for travel transactions on which the special VAT scheme is not applicable (Circular Letter 2020/C/44).

The Circular Letter does not contain any amendments with regard to the special VAT scheme for travel agencies, but rather provides, in addition to an overview of the relevant definitions, a clear summary of the VAT treatment applicable in following situations:

  • the supply of goods and services forming a travel, by means of own resources (e.g. provision of transport or exploitation of a hotel by the organizer of the travel himself);
  • the provision of services by intermediaries;
  • the supply of travels subject to the special VAT scheme for travel agencies;
  • the provision of services linked with the organization of a travel (i.e. transport and various insurances).

The Circular Letter also contains several numerical examples that clarify the above VAT treatments.  

 

Contact

Questions regarding this subject can be addressed to one of our VAT specialists, or you can send an e-mail to [email protected]: