VAT, tourism and travel agencies: objectives and challenges to be addressed

The tourism and travel sector is a pillar of the European economy, contributing about 10% of the EU’s GDP and involving over 4.36 million businesses. However, in this sector, VAT tax rules are now considered obsolete, incapable of addressing the challenges posed by digitalization, increasing international mobility, and global competition.

The EU Commission has decided to intervene by launching a public consultation accessible until 16 October 2025. This is a crucial timeframe: in these weeks, all citizens, organizations, SMEs, cross-border operators, tax and customs authorities, and industry professionals can express their opinions on the future VAT rules that will govern travel, tourism, and passenger transport in Europe.

The consultation, hosted on the official EU Commission platform, represents a unique opportunity to influence the legislative proposal that will be presented in the fourth quarter of 2026.

Objectives of the consultation

The travel and tourism sector has significant weight in the European economy, but the current VAT rules are considered outdated and poorly suited to the new challenges posed by digitalization and increasing international mobility. In response to these issues, the EU Commission has launched a public consultation that will remain open until 16 October 2025, offering citizens, businesses, and sector o...