Isolated accommodation service can be a “TOMS” travel service - ECJ judgement C-108/22

In the "Alpenchalets Resorts" case (C-552/17), the ECJ had already ruled for holiday flats that a TOMS travel service does not have to consist of several components in order to be subject to margin taxation. The ECJ has now confirmed this for hotels in a Polish case.

The facts:  Isolated hotel service

A Polish consolidator purchased accommodation services in its own name and on its own account from various hotels and other establishments with a similar function and then resold these services to other entrepreneurs. The consolidator normally did not provide any additional supplies other than advice on the choice of accommodation and assistance in organising the trip.

The referring Polish court asks whether the activity of the consolidator is subject to margin taxation for travel services, even though it only involves isolated accommodation services and not complex travel services.

ECJ: Isolated accommodation service is sufficient

The ECJ made short work of this by referring to its decision in the "Alpenchalets Resorts" case (C-552/17) from 2018, in which it had already ruled that the isolated letting of holiday flats was subject to margin taxation. Unsurprisingly, nothing else can apply to the isolated hotel service. In fact, it is surprising that the ECJ accepted this case for decision at all. The accompanying services mentioned, such as consultancy and organisation, are ancillary services that are also subject to margin taxation.

Dated: 20 July 2023


Nadia Schulte
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