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VAT advice for passenger transport
Expert advice on the VAT treatment of domestic and cross-border passenger transport, including the applicable VAT rates, ancillary services and the Tour Operator Margin Scheme.
Transport & logistics
VAT specialist for the passenger transport sector
From public transport, coaches and rail to air travel, river cruises, taxi services and platform services: VAT INSTITUTE is a trusted VAT partner for companies that carry passengers. We know the specific VAT rules for passenger transport at home and abroad and advise you on applying them correctly in your daily operations.
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VAT refund claims
Reclaiming foreign VAT on costs such as fuel, tolls and the use of charters. For each situation we assess whether the VAT can be recovered through a refund claim or through a local return.
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Returns and registrations
VAT registrations, periodic returns and refund claims in the countries where you operate and where an obligation actually exists. If your transport falls under a reverse charge mechanism or the zero rate, registration is not always mandatory, but it may still be needed in order to reclaim locally paid VAT. We tell you honestly which route is best in your case. Centrally coordinated by our compliance team.
- All of Europe cross-border
- VAT returns and refund claims for passenger carriers in the European countries where your routes run.
- 20+ years
- For more than twenty years we have advised passenger carriers on the VAT consequences of the transport they provide.
- All forms of transport
- From public transport, private coach hire and taxi to rail, air travel, ferry services, river cruises and digital transport platforms.
Passenger transport: a VAT regime of its own
The VAT treatment of passenger transport differs from that of freight transport. Passenger transport is in principle taxable in the place where the transport is carried out. For cross-border journeys this means the fee must be split across the countries involved on the basis of the distances travelled. Every country has its own VAT rates: some apply a reduced rate, others the standard rate. In specific situations a zero rate or a reverse charge mechanism applies under certain conditions.
For carriers that regularly run routes through several countries, this calls for specialist knowledge: from the place-of-supply rules and the turnover split per country to the VAT treatment of ancillary services, package tours and the Tour Operator Margin Scheme.
From coach to platform: all forms of passenger transport
Our expertise is not limited to one form of passenger transport. We advise and support coach companies, public transport operators, rail carriers, airlines, taxi companies, ferry services, river cruise operators and parties that carry passengers through digital platforms.
The rise of transport platforms such as Uber and Bolt brings new tax questions with it, such as the deemed supplier rules and the VAT position of drivers. On the VAT side, we follow these developments closely.
Specific sector knowledge
The VAT rules for passenger transport are fundamentally different from those for freight transport. We know the differences: from splitting transport turnover across countries for international journeys to the points of attention around ancillary services and the Tour Operator Margin Scheme.
International compliance, centrally coordinated
You carry passengers all over Europe, but your VAT compliance does not have to be fragmented. We handle your registrations and returns in the relevant countries from one central point.
Partner in a changing sector
The passenger transport sector is in full motion. Changes in VAT legislation, such as ViDA and the deemed supplier rules, call for an adviser who not only follows the developments but also translates them into your planning, your quotations and your invoicing.
Knowledge base
Latest news
Relevant developments in VAT and excise duty for the passenger transport sector.
News
Consultation on the deemed supplier rule for short-term rental and passenger transport
The draft bill introducing the deemed supplier rule for short-term rental and passenger transport by road has gone out for public consultation. We responded on three points that affect practice.
Read moreNews
CJEU: no transfer tax on a restructuring involving property companies
In the Nova Ibermoldes case, the Court of Justice of the EU ruled that Portugal may not levy transfer tax on a restructuring in which a public limited company is incorporated and its shares are paid up by contributing shares in a property company. The ruling may also affect the restructuring of Dutch groups holding property companies.
Read moreFrom practice
The VAT return: surely that just follows from the records?
The ideal is a client who supplies all the right data and a return that simply falls out of it. That day is still a long way off. Even with limited information there are signals that should prompt you to ask questions.
Read moreFAQ
Frequently asked questions
Is your question not listed? Feel free to contact us, we aim to respond within one business day.
For cross-border passenger transport, the total fee must be split across the countries where the transport was carried out on the basis of the distances travelled. The local VAT rate then applies in each country. In a number of countries a reverse charge mechanism applies under certain conditions. In addition, the correct taxable amount, the VAT treatment of ancillary services, package tours, the Tour Operator Margin Scheme and disbursements all play a role. You make the calculations for quotations and invoices yourself. We review the VAT treatment, in advance if you wish, and check the returns for accuracy.
Certainty starts with a conversation
Schedule a meeting with one of our specialists and get clarity on your VAT matters. We will help you find the best approach for your specific situation.