SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

Skatteudvalget 2023-24
SAU Alm.del Bilag 54
Offentligt

October 2023

Stakeholder input paper

–

VAT in the Digital Age platform rules

As representatives of European homeowners, short-term accommodation and passenger transport platforms, as well as small travel

and tourism operators,

we strongly recommend pausing

the provisions for the deemed supplier regime under ViDA until a thorough,

data driven analysis may be undertaken.

This would allow time to, on the one hand, conduct an in-depth quantitative and qualitative assessment of the potential implications of

this package on EU businesses, consumers and taxation authorities and, on the other hand, to assess the impact of other relevant pieces

of EU legislation, such as 7th revision of the Directive on Administrative Cooperation in the field of taxation (DAC-7) and the future

Regulation on Short Term Rental data collection and sharing.

We believe that it is crucial to rethink the current approach in order to safeguard European consumers from increased prices and supply

limitations and to protect the multitude of EU businesses of different sizes and shapes (short

term rental ecosystem you can find here)

and non-professionals whose competitiveness would be put at risk should the DSR under ViDA package be implemented.

In accordance with Art. 5 (4) TEU as well as Art. 69 TFEU, Union action must abide by the fundamental legal principle of proportionality.

This principle requires that measures are appropriate, necessary and reasonable in order to attain the envisaged objectives. When

considering the objectives outlined for the VAT in the digital age proposals, we sincerely doubt as to whether the measures proposed are

indeed proportional taking into consideration that, first, no evidence has effectively been presented of distortion of competition between

online platforms and supplies performed in the traditional economy. Moreover, the majority of supplies which will be taxed under the

proposed regulation are generally not 'escaping VAT taxation' but simply not subject to VAT based on effective local rules (e.g. VAT

exemptions applicable to STRs and passenger transport and SME thresholds). Moreover, according to the ViDA Study the blocked input

VAT (12.2 pct of turnover) which is a cost to the underlying non-VAT registered accommodation providers corresponds to the estimated

output VAT (12.5 pct) that would have to be charged so even at present there is no ‘escaping VAT taxation’.

Secondly, if the objective of

the Member States were truly to tax all services in the STR- and passenger transport sector, this could be attained by adopting much less

impactful changes to the law. As such, we strongly question whether this legislation is in accordance with fundamental principles of EU

law.

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

We underscore that the information and suggestions below do not constitute an endorsement by our organizations of the ViDA deemed

supplier regime. We firmly believe that the conceptual approach and assumptions of the DSR are fundamentally flawed and require

urgent reconsideration.

Nonetheless, and in light of the more advanced stage of negotiations, our organizations wish to support the

development of a practicable legal framework, thus avoiding further legal unclarity, unimplementable provisions and burden for all

participants in the digital economy, including national tax administrations.

Further information:

Minutes and presentations of the industry’s ViDA workshop on the pillar of platform

economy, which took place on

12 October, 2023 can be found attached to this document.

ViDA Study -

We caution the Member States from making VAT decisions based on the current Impact Assessment accompanying the

ViDA package. This study associated with ViDA is incomplete and not based on full and accurate data. For example, the study claims

that there are only 62 accommodation platforms operating within the EU in the travel sector. However, in its Impact Assessment for

the Regulation on data collection and sharing relating to short-term accommodation rental services

the European Commission also

stated that there are over 700 such platforms operating within the EU.

We have demonstrated that even the 700 number is far too low and does not take into account the true EU travel ecosystem, or the

breadth and unintended reach that ViDA will provide. We do not suggest that the legal framework for VAT and the digital economy

does not merit potential adjustment, but any decision should be based on sound and reliable data (such as DAC7 data). The ViDA

rules will have a real impact on the EU travel economy, and we implore Member States to make data based decisions to avoid creating

a substantial negative impact, all in the name of political and special interest pressure.

Regarding passenger transport, the ViDA deemed supplier regime (DSR) is drafted with an assumption that the sector is filled with

part-time workers (private individuals) that drive to round up their revenues competing with the traditional taxi industry. This is

absolutely wrong and not happening in Europe. Most Member States allow PHV (private hire of vehicles) only to licensed drivers that,

if above the VAT threshold, would obtain a VAT number, as is the case for the taxi industry.

Furthermore, an evidence-based study that reflects the main issue for policymakers - fair and proportional taxation of services - needs

to take into consideration the full amount of taxes paid under different concepts. Currently the focus is only on VAT (and even there,

SWD(2022) 350 final

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

weak and flawed) but in order to provide a real picture of taxation, all other taxation such as income tax or the possibility to deduct

costs depending on the type of service needs to be considered. Before such a wider, comprehensive and holistic study with data

evidence is available, the process should be kept on hold.

Double taxation - Service Fees -

The 25 September Spanish presidency compromise language does not address the double taxation

of platform service fees. Changing the place of supply to the location of the property from user location (a) goes against international

VAT/GST norms for treatment of these types of fees (100+ countries), (b) results in double taxation on service fees (e.g. a UK guest

booking a Spanish listing will pay UK and ES VAT on the service fee), and (c) shifts service fee VAT to a few Mediterranean Member

States (traditional holiday destination States) while depriving northern EU Member States of VAT revenue.

Double Taxation - simplified regimes -Most

EU countries apply simplified VAT schemes for SMEs according to Title XII, Chapter I art.

281-292 of the VAT Regulation. The situation of such SMEs is not at all addressed by the proposal. These SMEs, while legally

considered as full traders, are exempt from the normal VAT arrangements to avoid accountancy and administrative burden. For these

SMEs, input VAT cannot be recovered and is a cost while prices to clients includes a hidden VAT component.. This reduces their

competitiveness when selling via platforms, which is not only contrary to channel neutrality but also to fair competition rules, basic

principles of the EU’s

legal order.

This situation applies to about 50% of

rural

accommodation services in Europe, putting them in clear disadvantage in spite of being

the only viable business model. It should also be questioned and tested in this context under the

Rural Proofing requirement

Council Decisions.

Constituting a clear case of double taxation, Member States should be aware that approval of the proposed change may lead to

conflict and legal challenges.

The situation is similar in the case of services that are exempt from VAT either due to their consideration as administration of property

(rentals without additional services) or that are below the threshold for being registered for VAT (analogue to art 212). In these

cases, providers still support VAT on their costs, which additionally cannot be deducted at the same level as in full businesses,. The

same objective situation regarding channel neutrality and fair pricing as above also exists in these cases.

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

Recital/Article

Latest compromise text (25

September 2023)

Proposed amendment

Justification/Comments

COUNCIL DIRECTIVE

amending Directive 2006/112/EC as regards VAT rules for the digital age

(26) In order to avoid that platforms

making deemed supplies

in accordance

with Article 28a

are inadvertently

included in the special scheme for travel

agents, or vice versa, transactions for

which the platform is the deemed

supplier

in accordance with Article 28a

This amendment is proposed in line with the amendments made

should be excluded from that special

in Article 28a to differentiate between Article 28 and Article 28a

scheme.

Deemed supplies made in

supplies.

accordance with Article 28 should be

excluded from Article 28a, thereby

continuing to fall within the special

scheme for travel agents to ensure these

proposals do not inadvertently affect the

scope of Article 306.

Recital 26

(26) In order to avoid that platforms

making deemed supplies are

inadvertently included in the special

scheme for travel agents, or vice

versa, transactions for which the

platform is the deemed supplier

should be excluded from that special

scheme.

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

Article 28a

(!)

1. Notwithstanding Article 28, a

taxable person who facilitates,

through the use of an

electronic interface such as a

platform, portal, or similar

means, the supply, within the

Union, of short-term

accommodation rental,

namely uninterrupted rental

of accommodation to the

same person for a maximum

of 30 nights, , as referred to in

Article 135(3), or passenger

transport services by road or

water, shall be deemed to

have received and supplied

those services himself unless

the person providing those

services has:

provided to the taxable

person facilitating the

supply his VAT

identification number of

the Member State of the

supply, or the

identification number

allocated to him in

accordance with Article

362; and

ii.

declared to the taxable

person facilitating the

supply that they

undertake to charge any

applicable VAT on the

supply.

Notwithstanding Article 28,

taxable person who facilitates,

through the use of an electronic

interface such as a platform,

portal or similar means, the

supply, with the Union, of short-

term accommodation rental,

namely uninterrupted rental of

accommodation to the same

person for a maximum of 30

nights where defined by

Member States to be regarded

as having a similar function to

the hotel sector in accordance

with Art. 135 (2) (aa),

passenger transport services by

road or water,

to a non-taxable

person,

shall be deemed to have

received and supplied those

services himself unless the

person providing those services

has:

provided

to the taxable

person facilitating the supply

his VAT identification number

of the Member State of the

supply, or the identification

number allocated to him in

accordance with Article 362;

and

ii.

declared

to the taxable

person facilitating

the supply

that they undertake to

charge any applicable VAT on

Our suggestions regarding Art. 28a aim to address several major

issues:

1. Introducing additional flexibility for Member States to

determine the application of the DSR to short-term

rentals based on their national law and national

accommodation markets. This suggestion functions in

conjunction with amendments to Art. 135 (2) (aa)

2. Many platforms (including online travel agents) act as

undisclosed agents for VAT purposes, meaning that they

act in their own name but on behalf of the homeowner.

This means those platforms fall squarely within Article 28

of the EU VAT Directive under the Sep. 25 compromise

text, meaning that they are already treated as the

deemed supplier for VAT purposes. This also has the

effect of placing these platforms within the tour

operators margin scheme (TOMS) under Article 306 of

the Directive. TOMS was introduced to simplify the VAT

accounting for the travel industry. However, based on

the proposed text, undisclosed agents (i.e. those acting in

their own name but on behalf of another person) will be

excluded from TOMS if their supplies fall within Article

28a. The reason for this is that the proposed Article 28a

begins by stating “Notwithstanding Article 28”, which

essentially means that Article 28a takes precedence over

Article 28.

Whilst we can understand the reasoning behind the

exclusion proposed in Article 306 paragraph 3 for

supplies falling within Article 28a (i.e. without this all

supplies caught by Article 28a would by default all fall

within Article 306, so TOMS could be used for all), it is

not clear why those supplies already falling within Article

28, where the platform is already being treated as the

deemed supplier, would be required to fall under Article

28a going forwards? This has the legal effect of pulling

supplies that currently fall under Article 306 out of this

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

the supplyies

facilitated by

the taxable person.

2. Paragraph 1 of this Article shall

not apply to supplies made

under Article 28.

Annex II

The place of supply of the facilitation

service provided to a non-taxable

person by a platform, portal or similar

means shall be the place where the

underlying transaction is supplied in

accordance with this Directive.’;

Indicative list of the electronically

supplied services referred to in point (c)

of the first paragraph of Article 58

(…)

(6) supply of facilitation services by a

platform, portal or similar means

Art. 46a

special scheme and being required to be accounted for

under Article 28a instead.

3. We suggest that the DSR applies only to B2C supplies.

This would prevent platforms having to register in those

Member States that do not provide for a B2B reverse

charge (alternative would be to extend the scope of the

OSS but we understand this is not a viable option at this

point)

4. We suggest that the taxable person facilitating the supply

is only required to verify i. and ii. on a single occasion

rather than per supply and that information may be

retrieved indirectly (in light of platform-on-platform

activity)

In addition to double taxation, as alluded to in the introduction,

the proposed rules may cause the following undesirable

complexities:

1. Where a platform charges a single fee for facilitating a

booking of a (combined) trip of an (airport) taxi/bus ride,

flight and accommodation (or a trip under TOMS) the

underlying transactions are performed in more than one

place. As this should probably be considered a composite

supply, the facilitation fee will be taxable where the

supplier has established its business (Art. 45 VAT

Directive). With many platforms offering a growing range

of services and focusing on increasingly combining

supply, is this outcome in alignment with the desires of

the MS? We recommend to (re)consider clarifying that all

platform facilitation services are to be defined as

electronically supplied services taxable where the non-

taxable person

is established, has his permanent

address or usually resides per Article 58 (c) of the VAT

Directive.

As outlined in the ViDA Study this would also

result in the smallest shift of VAT revenues across current

Member States and at the same time reconfirm the VAT

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

treatment correctly applied by most platforms at

present.

3. In relation to cross-border transport of passengers within

the EU (e.g. flights), a platform may have to pay VAT for

its single facilitation service in different MS in

accordance with the transport that takes place in each of

these MS with the added complexity that the platform

usually does not have this information. To prevent this

issue, we suggest that an exemption is applied to the

facilitation services provided by a platform in relation to

international transport of passengers

Article 135 (2)

(!)

2. The following shall be

excluded from the exemption

provided for in point (l) of

paragraph 1:

(a) the provision of

accommodation, as defined in

the laws of the Member

States, in the hotel sector or in

sectors with a similar function,

including the provision of

accommodation in holiday

camps or on sites developed

for use as camping sites;

(aa) notwithstanding point (a),

the uninterrupted rental of

accommodation to the same

person for a maximum of 30

nights shall be regarded as

(aa) notwithstanding point (a),

the uninterrupted rental of

accommodation to the same

person for a maximum of 30

nights shall

not

be regarded as

having a similar function to the

hotel sector

unless defined as

such in the laws of the Member

States subject to criteria,

conditions and limitations to be

laid down by Member States;

We propose to redraft Art. 135 (2) (aa) to give additional

flexibility for Member States to designate at national level when

the DSR is appropriate to use. This would allow national

governments to fully consider the impact of the rules on their tax

administrations, accommodation sector and overall

competitiveness. Please note we remain very concerned 27

Member States will come up with different interpretations and

rules and national or even regional level further complicating

operating any deemed supplier regime. It would also be required

to clarify what type of accommodation would fall under Art. 135

(2) (a) vs. Art. 135 (2) (aa) since the deemed supplier regime

would only apply to the latter again creating legal uncertainty

and complexity.

In addition, the amendment addresses the problem that the 25

September compromise text introduced an additional definition

of short-term accommodation rental, which may have resulted in

adverse effects and a lack of legal clarity.

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

having a similar function to

the hotel sector subject to

criteria, conditions and

limitations to be laid down by

Member States;

(b) the letting of premises and

sites for the parking of

vehicles;

installed equipment and

machinery;

(d) the hire of safes. Member

States may apply further

exclusions to the scope of the

exemption referred to in point

(l) of paragraph 1.’;

Article 136c

Where a taxable person is deemed to

have received and supplied short-term

accommodation rental or passenger

transport services in accordance with

Article 28a, Member States shall exempt

the supply of the facilitation service

provided by that taxable person to the

person providing those services.’;

Article 136c

We suggest exempting, with a right to deduct, the facilitation

service provided by the platform to the underlying supplier to

mitigate the issues around VAT neutrality and the cascading VAT

effect (i.e. the underlying supplier cannot deduct input VAT

despite their services being taxable via the DSR regime).

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

In addition to the deduction referred

to in Article 68, the taxable person

shall be entitled to deduct the VAT

referred to therein in so far as the

goods and services are used for the

purposes of the following:

(a) transactions relating to the

activities referred to in the second

subparagraph of Article 9(1), carried

out outside the Member State in

which that tax is due or paid, in

respect of which VAT would be

deductible if they had been carried

out within that Member State;

(b) transactions which are exempt

pursuant to Articles 136a, 138, 142 or

144, Articles 146 to 149, Articles 151,

152, 153 or 156, Article 157(1)(b),

Articles 158 to 161 or Article 164;

pursuant to points (a) to (f) of Article

135(1), where the customer is

established outside the Community or

where those transactions relate

directly to goods to be exported out of

the Community.

In addition to the deduction referred to in

Article 68, the taxable person shall be

entitled to deduct the VAT referred to

therein in so far as the goods and services

are used for the purposes of the

following:

(b) transactions which are exempt

pursuant to Articles 136a,

136c,

138, 142

or 144, Articles 146 to 149, Articles 151,

152, 153 or 156, Article 157(1)(b), Articles

158 to 161 or Article 164;

(

Art. 169

Article 169 would have to be amended to ensure that the

platform facilitation service is VAT exempt but with right to

deduct (per prior comment).

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

Article 177

(!)

‘After

consulting the VAT Committee,

and with a view to simplifying the

procedure for collecting VAT or to

prevent certain forms of VAT evasion

or avoidance, Member States may

introduce specific arrangements to

determine the right to deduct input

VAT relating to goods and services

acquired by the taxable person

making a supply of short-term

accommodation rental, as referred to

in Article 135(3).’;

Member States may introduce specific

arrangements to determine a right to

deduct input VAT relating to goods and

services acquired by the non-taxable

person making a supply of short-term

accommodation rental that is facilitated

by a taxable person under Article 28a

and on which VAT is ultimately charged

The application of the proposed Art. 28a causes the supplies of

non-VAT registered persons to be subject to VAT (safe for when

exempt) whilst not granting these persons the rights to any form

of input VAT deduction. The deduction system is however

intended to relieve traders entirely of the burden of VAT payable

in the course of their economic activities. Consequently, to

ensure neutrality of taxation of all economic activities, a right to

deduction should exist in relation to any supply that is itself

subject to VAT. The current proposal does not adhere to this key

principle of VAT neutrality, causing a cascading tax effect that

cannot be justified by the mere fact that the facilitator is placed

between the effective (non VAT registered) supplier and

customer. Especially when considering that the preamble of this

proposal considers that the purpose of this legislation is to

address unjustified distortion of competition between supplies

that are deemed to be the same with the exception of the way

they are being offered to customers (i.e. performed through

online platforms vs. in the traditional economy). Whilst, as

mentioned, we are not convinced that said distortion truly exists,

we point out that where it were to indeed exist, the principle of

fiscal neutrality precludes that similar supplies of services, which

are thus in competition with each other, are treated differently

for VAT purposes (i.e. by taxing all 'same' transactions but only

allowing deduction to those offering their supplies in the

traditional economy).

Moreover, as follows from numerous cases before the Court of

Justice of the European Union, MS may impose obligations

necessary to ensure the correct collection of VAT and to prevent

evasion. However, any measures adopted by MS must not go

beyond what is necessary to achieve the objectives pursued.

Therefore, they cannot be used in such a way that they would

have the effect of systematically undermining the right to deduct

VAT and, consequently, the neutrality of VAT (see a.o. judgment

of 19 October 2017, Paper Consult, C-101/16, EU:C:2017:775,

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

paragraphs 49, 50). In this light and at a minimum, we strongly

urge MS to consider instating the proposed adjustment to

thethird subparagraph to Art. 177.

Art. 242a

1a: Where a taxable person facilitates,

through the use of an electronic

interface such as a platform, portal or

similar means, the supply, within the

Union, of short-term accommodation

rental or passenger transport services

by road or water and that person is

not considered to have received and

supplied those services themselves

under Article 28a, the taxable person

who facilitates the supply shall be

obliged to keep records of those

supplies. Those records shall be

sufficiently detailed to enable the tax

authorities of the Member States

where those supplies are taxable to

verify that VAT has been accounted

for correctly.’;

2. The records referred to in

paragraphs 1 and 1a must be made

available electronically on request to

the Member States concerned. Those

records must be kept for a period of

10 years from the end of the year

during which the transaction was

carried out.’;

1a: Where a taxable person facilitates,

through the use of an electronic interface

such as a platform, portal or similar

means, the supply, within the Union, of

short-term accommodation rental or

passenger transport services by road or

water

as referred to in Article 135 (2)

(aa)

and that person is not considered to

have received and supplied those services

themselves under Article 28a, the taxable

person who facilitates the supply shall be

obliged to keep records of those supplies.

Those records shall be sufficiently

detailed to enable the tax authorities of

the Member States where those supplies

are taxable to verify that VAT has been

accounted for correctly.’;

In Article 242a, whereas the previous version restricted the

record keeping requirements solely to the proposed Article

135(3) supplies (which previously set out the definition of the

supplies to fall within Article 28a), now the reporting

requirements were made applicable to all supplies that fall under

Article 28a, which has also had the reference to the specific

definition of STRs removed. This means that the scope of the DSR

has been greatly and disproportionately increased, now meaning

that the platform is treated as the deemed supplier even where

the underlying supply is exempt from VAT.

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

COUNCIL IMPLEMENTING REGULATION

amending Implementing Regulation (EU) No 282/2011 as regards information requirements for certain VAT schemes

Certain Member States allocate a VAT

identification number to taxable persons

who do not charge VAT on their

supplies, including taxable persons who

use the special scheme for small

enterprises as set out in Title XII,

Chapter 1, of Directive 2006/112/EC.

order that the taxable person facilitating

the supply can identify whether the

deemed supplier model applies or not, it

is necessary to set out that, in those

cases, the underlying supplier should not

provide that VAT identification number to

the taxable persons who facilitate,

through the use of an electronic interface

such as a platform, portal, or similar

means, the supply of short-term

accommodation rental or passenger

transport.

Recital 4

Certain Member States allocate a VAT identification number to taxable persons

who do not charge VAT on their supplies, including taxable persons who use the

special scheme for small enterprises as set out in Title XII, Chapter 1, of Directive

2006/112/EC. In order that the taxable person facilitating the supply can identify

whether the deemed supplier model applies or not, it is necessary to set out that,

in those cases, the underlying supplier should not provide that VAT identification

number to the taxable persons who facilitate, through the use of an electronic

interface such as a platform, portal, or similar means, the supply of short-term

accommodation rental or passenger transport.

In our view, the first

sentence of this recital

is conceptually

incorrect. Such taxable

persons are deemed

to have waived

supported and

charged VAT for

simplification

purpose. By applying

the deemed supplier

regime to them, they

would be subject to

double taxation.

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

1. For the application of Article 28a of Directive 2006/112/EC, the

term ‘facilitates’ shall mean the use by a taxable person of an

electronic interface to allow a customer and a supplier offering

supplies, within the Union, of short-term accommodation rental

or passenger transport services by road or water through the

electronic interface to enter into contact, which results in a supply

of those services through that electronic interface.

(a) that taxable person does not set, either directly or indirectly,

any of the terms and conditions under which the supply is made;

(b) that taxable person is not, either directly or indirectly, involved

in authorising the charge to the customer in respect of the

payments made;

in the provision of those services.

Article 9b

2. Article 28a of Directive 2006/112/EC shall not apply to a taxable

person who only provides any of the following:

a) the processing of payments in relation to the supply of short-

term accommodation rental or passenger transport services by

road or water;

(b) the listing or advertising of short-term accommodation rental

or passenger transport services by road or water;

interfaces where short-term accommodation rental or passenger

transport services by road or water are offered for sale, without

any further intervention in the supply.

(d) the means by which the cost of passenger transport services

can be shared between the user and the person providing the

transport.

1. For the application of Article 28a of

Directive 2006/112/EC, the term

‘facilitates’ shall mean the use by a

taxable person of an electronic

interface to allow a customer and a

supplier offering supplies, within the

Union, of short-term accommodation

rental or passenger transport services

by road or water through the

electronic interface to enter into

direct

contact, which results in a supply of

those services

and collection of the

consideration for those services

through that electronic interface.

Our suggestion would aid to

resolve which party should be

considered the deemed

supplier, as this remains

currently unclear and will cause

complexities in light of

'platform-to-platform' activity.

Moreover, referring to ‘direct’

contact also ensures to exclude

from the definition of

facilitation the supply of

undisclosed travel agents

operating under the special

scheme for travel agents in

accordance with Article 306, in

line with the clarifications

brought to the new paragraph 2

of Article 28a above. It will also

assure that no party will need to

pay out of pocket to pre-fund

VAT under the DSR regime

where they are not collecting

the funds from the booker.

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Article 9f

The exemption laid down in Articles 98(2), 135(2) and 371, 377, 379 to 386 and

388 to 390c of Directive 2006/112/EC shall still apply where the person

facilitating the supply of services is deemed to have received and supplied those

services themselves under Article 28a of that Directive.

The exemption laid down in Articles

98(2), 135(2) and 371, 377, 379 to 386

and 388 to 390c of Directive

2006/112/EC shall still apply where the

person facilitating the supply of services

is deemed to have received and supplied

those services themselves under Article

28a of that Directive.

As per proposed

amends to Article 28a,

exempt supplies

should be excluded

from the deemed

supplier regime.

Therefore, this Article

is not required.

Article 30

1. The supply of services of intermediaries as referred to in Article 46 of

Directive 2006/112/EC shall cover the services of intermediaries acting in

the name and on behalf of the recipient of the service procured and the

services performed by intermediaries acting in the name and on behalf of

the provider of the services procured.

2. For the purpose of Article 46a of Directive 2006/112/EC, the term

‘facilitation service’ means the service supplied by a taxable person

through an electronic interface such as a platform, portal, or similar,

allowing a customer and a supplier to enter into contact which results in

a supply of goods or services through that electronic interface.

This facilitation service can be supplied to either the customer, the supplier, or to

both.

However, a taxable person is not supplying a ‘facilitation service’ where all

of the following conditions are met:

(a) that taxable person does not set, either directly or indirectly, any of the terms

and conditions under which the supply is made;

(b) that taxable person is not, either directly or indirectly, involved in authorising

the charge to the customer in respect of the payment made;

provision of those supplies.

2. For the purpose of Article 46a of

Directive 2006/112/EC, the term

‘facilitation service’ means the

service supplied by a taxable person

through an electronic interface such

as a platform, portal, or similar,

allowing a customer and a supplier to

enter into

direct

contact which

results in a supply of goods or

services through that electronic

interface.

In line with the

amendment proposed

to Article 9b above,

we propose to refer to

‘direct’ contact,

exclude from the

definition of

facilitation the supply

of undisclosed travel

agents operating

under the special

scheme for travel

agents in accordance

with Article 306, in

line with the

clarifications brought

to the new paragraph

2 of Article 28a above.

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

Article 46a of Directive 2006/112/EC shall not apply to a taxable person who only

provides any of the following: (a) the processing of payments in relation to the

supply;

(b) the listing or advertising of goods or services;

where goods or services are offered for sale, without any further intervention in

the supply.’

SAU, Alm.del - 2023-24 - Bilag 54: Baggrundsmateriale til Skatteudvalgets udvalgsrejse til Bruxelles den 12. og 13. november 2023

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The European Travel Agents' and Tour Operators' Association

European Holiday Home Association

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