Press Release: VAT: European Commission proposes to simplify rules for travel agents selling holiday packages

The European Commission presented a proposal on 18 February 2002 to modify the special value added tax (VAT) rules applicable to travel operators selling holiday packages for destinations within the European Union. Under the present special rules, travel agents are normally authorised to charge VAT on their profit margin instead of on the full value of their sales. The proposal would amend these rules to eliminate double taxation problems which currently arise when travel agents make sales to other agents rather than the public.

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