European Commission clashes with Germany
The European Commission has referred Germany to the Court of Justice of the European Union over Germany’s domestic laws on the VAT scheme for travel agents. The Commission has also formally requested Germany to amend its VAT rules on cross-border road passenger transport.
The Commission sent a reasoned opinion to German authorities on 24 September 2015 regarding its VAT scheme for travel agents. However matters have progressed to the Court of Justice of the EU as the Commission is not satisfied with Germany’s response. For more information, refer to the full press release issued by the Commission.
In a press release setting out infringement proceedings for April, the Commission stated that it has also issued a reasoned opinion to Germany in respect of its VAT rules on cross-border road passenger transport. In the absence of a satisfactory response within two months, the Commission may refer Germany to the Court of Justice of the European Union.