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A travel agency has enquired whether it must apply the special regime for travel agents or if it may opt for the general regime when selling holiday packages to German companies. The DGT ruled that while the special regime is the standard rule, an option for the general regime is permitted if the recipient is a taxable person or professional entitled to the deduction or recovery of the tax.
This ruling clarifies the conditions under which travel agencies can bypass the special regime in favour of the general VAT regime, specifically when dealing with B2B transactions involving entities entitled to VAT recovery.
The tax team reviews your specific situation.
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