The proposal of taxation of international passenger transport with respect to the including into the travel services

Milena Otavová and Veronika Sobotková
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Milena Otavová: Ústav účetnictví a daní, Mendelova univerzita v Brně, Zemědělská 1, 630 00 Brno, Česká republika
Veronika Sobotková: Ústav účetnictví a daní, Mendelova univerzita v Brně, Zemědělská 1, 630 00 Brno, Česká republika

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2012, vol. 60, issue 4, 299-306

Abstract: Generally, international passenger transport is exempt from the value added tax, in the case of air transport. International road passenger transport is however liable to taxation. However, the Council Directive on Value Added Tax contains a number of variations in the frame of the taxation of international passenger transport both for the states that joined the Community after January 1, 1978 and also for countries that were members of the Community on January 1, 1978. The international passenger transport is therefore rather problematic field due to a number of exceptions for individual Member States. It is on the providers or recipients of transport services to inform correctly about the taxation of international road transport and to pay properly the tax. The aim of the article is to evaluate the possibilities of the taxation of international passenger transport in the Czech Republic, Austria, Slovak Republic, Germany and Poland and to determine how the taxation of international passenger transport affects the tax liability and price of travel services provided in this country. From the comparative analysis it is evident that the tax paid abroad should be included in the total price of the purchased service. Based on the comparative analysis there will be a proposal for the taxation of international passenger transport so that the tax collection in the monitored countries would be simplified. The proposal recommends to unify an approach during the taxation of international passenger transport for all Member States of the European Union in order to reduce administrative costs on the part of the governments and individual entities.

Keywords: VAT Directive; international passenger transport; margin scheme; special regime for travel services; customer travel service (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:actaun_2012060040299

DOI: 10.11118/actaun201260040299

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