Keywords
Summary

Keywords

Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Special scheme for travel agencies

(Council Directive 77/388, Art. 26)

Summary

Article 26 of Sixth Council Directive 77/338 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment, is to be interpreted as not applying to the sale by a travel agent of opera tickets in isolation, without the provision of a travel service.

That provision introduces an exception to the general rules on the taxable amount with respect to certain operations of travel agents and tour operators and, being an exception to the normal rules of the Sixth Directive, that article must be applied only to the extent necessary to achieve its objective.

The application of that special scheme to an activity by which the travel agent merely sells tickets for performances without providing a travel service would distort competition, in view of the fact that a given activity would be taxed differently according to whether or not the trader selling those tickets was a travel agent.

(see paras 16, 24-25, operative part)