Germany’s Federal Ministry of Finance has been examining the taxation of travel services performed by companies based in third countries.
Germany’s Federal Ministry of Finance has been examining the taxation of travel services performed by companies based in third countries.
In a letter issued on 29 January 2021 (bundesfinanzministerium.de), the ministry states that the special scheme for travel agents (Sec. 25 of the German VAT Act – UStG) will no longer be applicable if the performer of these services is based outside the EU and does not have a fixed establishment in Community territory.
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