German VAT Proposal to Go Ahead Next Year

Back in January 2021 Germany announced that the Tour Operators’ Margin Scheme (TOMS) would not apply to operators from non-EU countries including the UK and that meant they would have to register for VAT in Germany.

The implementation was deferred to January 2023, with the German tax authority confirming its intention to push ahead in July.

Elman Wall Bennett’s Director and VAT expert, David Bennett took part in an ETOA webinar and highlighted that: “If a UK tour operator or an agent acting in its own name sells German accommodation in the UK next year, the company will be expected to pay VAT in Germany.”

In the same webinar, the association’s CEO Tom Jenkins specified that this means that “all non-EU intermediaries selling German products must register with the German tax authorities.”

The subject is covered in more detail on the Travel Weekly website, please click HERE to read the full article.

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