The EC Commission has referred Germany to the ECJ in relation to the way it applies the special scheme for travel agents – known as the tour operators margin scheme (TOMS) in the UK.

This is following Germany’s inaction after the Commission issued it a reasoned opinion last year (as reported here).

Germany currently only applies the special scheme to travel services supplied to private individuals, however following the ECJ case of the Commission v Spain in 2013, Member States are now required to apply this to business travellers as well.

In addition to this, Germany also allows travel agents to set a single profit margin for all supplies of travel packages sold during a period, however under EU rules the margin should be calculated per travel service – interestingly the EC Commission on 1 June 2016 has objected to a proposed derogation for Austria to allow travel agents to calculate a single profit margin during a year for all supplies of travel services covered by the special scheme.

It’s understood that a general EU review of the travel scheme will not happen until the earliest of 2018, however a number of countries have yet to introduce the new rules formally including the UK (allow they allow direct effect of the rules) following the outcome of the proposed review.

By |June 3rd, 2016|