EU Takes 8 Countries To Court Over Travel Tax Rules

Law360, New York (January 27, 2011, 3:06 PM EST) -- The European Commission said Thursday it is taking eight countries to court for improperly implementing value-added tax rules and distorting competition between travel agents.

The commission said it has opted to refer the Czech Republic, Finland, France, Greece, Italy, Poland, Portugal and Spain to the European Union's Court of Justice for incorrectly applying EU VAT rules for travel agents, causing some agents to carry a heavier tax burden than others.

The dispute concerns special provisions in the VAT rules for agents when they sell packaged trips...
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