Delay in Implementation
However, following discussions with industry representatives in late 2022, the government announced in December 2022 that the implementation of this new rule would be delayed by one year until at least 2024. This delay allows more time for the government and industry representatives to work out the details and ensure a smooth transition.
VAT Collection Obligation for Non-Resident Suppliers
According to statements from The Travel Association (ABTA) and the European tourism association (ETOA), German authorities are considering applying the requirement only to non-resident suppliers of services rendered to EU consumers. This would mean that only non-resident travel agents and tour operators providing services to EU citizens would be responsible for collecting the VAT. In contrast, those providing services to travellers outside the EU would not be affected.
Practical Application and Legal Issues
The government is currently examining how to practically apply these requirements and address any legal issues that may arise. They are also considering the potential impact on the travel industry, which has already been greatly affected by the COVID-19 pandemic. The delay in implementing this new rule will give the government and industry representatives more time to work out the details and ensure a smooth transition for all parties involved.