Český finanční a účetní časopis 2014(1):105-117 | DOI: 10.18267/j.cfuc.384

Proposal of Amendments of the VAT - Directive in Respect of the Taxation of Travel Services

Milena Otavová

Ing. Milena Otavová, Ph.D. - odborná asistentka; Ústav účetnictví a daní, Fakulta provozně-ekonomická, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno; <milena.otavova@mendelu.cz>.

The paper examines the principle of special procedure of a travel agent (travel services) with regard to both the Czech VAT Act and the VAT-Directive, where is a visible discrepancy in the definition of "customer". Based on the model examples the advantages and disadvantages of both procedures are evaluated and consequently the amendments of the VAT-Directive are recommended. Based on the comparison and processing differences found by using standard scientific methods is possible to formulate the proposal of amendments of the VAT-Directive. The aim is to determine the impact on tax base of taxpayer providing travel agent in the case of applying the normal or special procedure. Consequently, to propose the amendments of the VAT-Directive, by which would be achieved the adaptation of the rules with regard to the specific nature of business of the travel agent providers, in order for them the rules were simpler and more over the administrative burden was reduced. The amendments of VAT-Directive are proposed both for outgoing and for incoming travel agent, where on the base of results received different advantages of individual taxation procedures were determined for them.

Keywords: VAT Directive; VAT harmonization; Margin scheme; Special regime for travel services; General regime form travel services; Customer travel service.

JEL classification: H21

Published: March 1, 2014  Show citation