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A travel agency enquired whether the number of overnight stays could be used to apportion the portion of a trip subject to VAT from the exempt portion. The DGT ruled that the proportion of distance travelled within EU territory must be used instead.
This ruling clarifies the method for calculating the taxable and exempt components of travel agency services, specifically regarding the transport element, ensuring consistency with distance-based criteria rather than stay duration.
The tax team reviews your specific situation.
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