Collective Commentary about the New Package Travel Directive

THE TAX IMPLICATIONS OF COMBINED TRIPS 611 will remain as subject and not exempt, effectively taxing VAT, which excludes OPPTT 12 . The General Directorate of Taxes (GDT) in binding consultation V0575-15 clarifies which services can be considered as complementary to the hotel industry, and which not. VATL herself in her art. 20 One 23 already cites some by way of example, such as restaurant, cleaning, laundry or other similar services, which the consultation we cite completes and clarifies, in the sense that complementary services are those of reception and permanent attention and continued with the client in a space for this purpose, periodic cleaning of the house, periodic change of bed and bath linen and other services such as luggage custody or the press. The mere services placed in the apartment or dwelling of dishes, kitchen utensils and other household equipment are not complementary services of the hospitality industry. Neither are the cleaning service, the change of clothes at the entrance and exit of the contracted period, the cleaning service of the common areas such as the portal, the stairs or the elevators or the urbanization where the property is located, and neither do technical assistance and maintenance services – unusual by their very nature – such as plumbing, glassware, locksmithing or repair of household appliances. Services that are not considered as complementary to the hotel industry are not subject to tax for them, even if they are billed as such, benefiting from the exemption that concerns the rental of housing in VAT if they are considered accessories to the main benefit consisting of the lease of housing. This is indicated by the binding consultation of the GDT n. V2097-15, of October 10, 2015, based on abundant jurisprudence of the Court of Justice of the European Union 13 . It is indicated that, having ancillary benefits to another principal, they enjoy the fiscal treatment of the latter, provided they have a true accessory character, that is, when they do not They constitute an end in itself for the clientele, but are merely a means to enjoy the best conditions of the main service. It occurs, in the case of the query we cite, when the lease of the tourist apartment involves billing services such as coat clothes and cleaning of the apartment, without considering complementary to the hotel industry. 12 The exemption does not take place in the case of “[l] apartment leases of or furnished homes when the lessor is obliged to provide some of the complementary services of the hotel industry, such as restaurant, cleaning, washing of clothing or other analogues”. See the binding consultation of the GDT n. V1553-17, of June 16, 2017 (JUR / 2017/206249). 13 It cites, for example, the Judgments of February 25, 1999, Card Protection Plan Ltd (CPP), Case C-349/96; of May 2, 1996, Faabord-Gelting Linien, Case C-231/94; of October 22, 1998, Madgett and Baldwin, cumulative cases C-308/96 and C-94/97 and that of October 27, 2005, Levob Verzekeringen, case 41/04.