Collective Commentary about the New Package Travel Directive

634 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE First of all, the question arises as to whether there are any direct and immediate links between the Directive on tourist packages and the VAT Directive 2006/112/EC. The answer is negative because the two sectors are not formally linked by explicit coordination rules. However, it is reasonable to assume that in the coming years the European VAT legislation containing the special scheme for the services of tourist agencies will eventually achieve substantial coordination with the Directive. As known, VAT is a harmonized tax that applies to every tourist service throughout Europe. The European rules on VAT rates contain a general rule, followed by rules allowing Member States to maintain or apply for derogations 21 . In particular, there are generally three types of VAT rates: minimum, reduced and ordinary. It is provided that the standard rate of VAT applicable to the supply of goods or services may not be less than 15% 22 . Member States may apply one or two reduced rates, not lower than 5%, only to the supplies of goods or services listed in Annex 3 to the Directive. Among these, the most significant are food products, medical products and devices, hotel services, catering services. The SixthVATDirective contains further derogations from the determination of rates and, in any case, further derogations may be granted to Member States at their request. This has led, in some Member States, to the introduction of reduced rates even below the minimum of 5%, known as “super reduced rates”. The minimum rate is normally applied to sales of basic necessities (for example: food, daily or periodical press, etc.). The reduced one, applies to tourist services (hotels, bars, restaurants and tourist products of various kinds), to specific food products and particular building recovery operations. The ordinary rate, on the other hand, applies to all those cases in which the legislation does not provide for one of the previous rates. 21 Finally, the Romanian Government has to be mentioned, which on 4 October approved an emergency ordinance to reduce the VAT rate in the tourism sector, which will increase from the current 9% to 5%. In particular, the Ordinance provides, from 1 November 2018, for services relating to accommodation in the hotel sector or similar establishments. With the adoption of this measure, the Romanian Government wants both to stimulate the productivity, competitiveness and efficiency of tourism and to reduce tax evasion. 22 Art. 97 of the Directive 2006/112/CE.