Tourism Bodies Call on EU to Review VAT Platform Rules

A group of organizations representing European homeowners, short-term accommodation providers, passenger transport platforms and small travel/tourism operators are calling on EU officials to reexamine a set of proposed VAT platform rules.

The group aims to safeguard consumers from increased prices and supply limitations and hundreds of EU businesses whose competitiveness would be put at risk.

A draft VAT regulation (VAT in the Digital Age – ViDA) was tabled last December by the European Commission which foresees among others a supplier regime that would oblige short-term accommodation and passenger transport platforms to account for, collect and remit the VAT on behalf of providers. The groups say this would increase prices for consumers by around 20 percent and in many cases generate double taxation.

Photo source: ECTAA.

“We believe the deemed supplier regime is a solution in search of a problem which will unfairly disadvantage services sold through platforms, lead to double taxation, hurt private providers seeking to supplement their income, make it nearly impossible for SME platforms to implement, and raise prices across the board in the travel sector,” said the associations.

Ahead of an EU Finance Ministers debate on this subject on June 16, the organizations – consisting of Bolt, Confedilizia, the European Holiday Home Association, Classifieds Marketplaces Europe, eu travel tech, RuralTour and the  European Travel Agents’ and Tour Operators’ Association (ECTAA) – are urging EU governments and authorities to rethink the current approach and conduct a thorough analysis of the deemed supplier regime’s impact before moving ahead with negotiations in the Council.