The EUCJ case of Maria Kozak v Dyrektor Izby Skarbowej w Lublinie

The EUCJ case of Maria Kozak v Dyrektor Izby Skarbowej w Lublinie

  • (C-557/11, published on 31 October 2012)
     
    This ruling can open new opportunities to claim back VAT.
     
    Ruling of the EUCJ :
    EU: The ECJ ( European Union Court of Justice ) confirmed that the normal VAT rules on place of supply and VAT liability apply to ‘in-house supplies’ made under the Tour Operators Margin Scheme (TOMS). This applies even where such supplies are made in association with ‘bought in’ third party TOMS supplies. The ‘single composite supply’ analysis available in other areas of VAT cannot apply in these circumstances
    (Maria Kozak: C-557/11).
     
    Summary of the decision
    The ECJ case of Maria Kozak v Dyrektor Izby Skarbowej w Lublinie (C-557/11, published on 31 October 2012) highlights the complexity of a special VAT scheme for tour operators.
    The “Tour Operator Margin Scheme” (TOMS) is compulsory, preventing recovery of VAT on relevant purchases, but charging VAT only on the margin between purchases and sales. Importantly, the scheme is not restricted to travel agents or tourist businesses, but includes all businesses which make qualifying supplies of the following services:
    • accommodation
    • passenger transport
    • hire of a means of transport
    • trips or excursions
    • services of tour guides
    • use of special lounges at airports
    The decision may therefore be of relevance to passenger transport businesses which also arrange guided tours, theatre trips, over-night accommodation, meals, and so on.