ETOA: New German VAT Tax Rule is a threat to Tourism Export

Read us | Listen to us | Watch us |Events| Subscribe | Our Social Media|


Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Corsican Corsican Croatian Croatian Czech Czech Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Xhosa Xhosa Yiddish Yiddish Zulu Zulu
Germans about to face new rules for outbound international tourism and travel
german news1

Providing tourism and travel services in Germany will get a lot more costly, if your company is located outside the European Union. ETOA learned about a new regulation on Friday, making it tough for UK companies to deal with Germany.

Print Friendly, PDF & Email

Tom Jenkins, CEO of the European Tourism Association expected this.

How to tourists travel to Europe and the UK after Brexit? This question was debated by ETOA and Tom Jenkins on the sideline of the 2019 World Travel Market in London. 2021 now started, and the UK outside the EU is a reality.

On January 29, 2021, the German Federal Ministry of Finance sent new guidelines to tax authorities in all German states.

Signed by a lady or gentleman by the last name Rademacher and no first name, this document has an official number 2020/0981332. In addition, another number abbreviated with GZ III C2 – S 7419/19/10002 : 004 makes this document even more official and threatening.

The official document says:
I. A question was raised, if special rules for travel services also apply for companies headquartered in a third country, and without a branch in the common EU region.

II clarifies that the (special rule) exemption for VAT tax for such companies is not applicable.

III. The letter orders tax authorities to apply this ruling to all pending cases. This rule would not apply for services concluded by December 31, 2020

What this means?

It clarifies that, in the view of the German authorities, the Tour Operators Margin Scheme is only available to companies within the European Union. It follows that non-EU companies that deliver travel services within Germany must register for VAT with the German Tax Authorities. This is effective from 1st January 2021.

Since the UK is now no longer a member of the EU, it will have a dramatic impact in terms of tax liabilities and compliance costs for British companies, but it goes further.

BRD1

This move may have been triggered by Brexit given the size of UK outbound business, but its remit is not exclusive to the UK. It encompasses all operators selling Germany anywhere in the world who will be required to register and pay VAT on the German portion of the product at the price charged to the consumer.

It also has wider implications as this could be adopted by other member states, and constitute a serious threat to EU export revenues.

ETOA is requesting an urgent clarification by German authorities.
.

Print Friendly, PDF & Email
>