UK travel agents face VAT threat
European Commission plans to impose VAT on package holidays could cost UK travel agents £5bn in business and 5,000 jobs, a leading travel expert has warned.
Speaking in London, Tom Jenkins, executive director of the European Tour Operators Association, Tom Jenkins presented reporters with a over-sized air ticket which he said represented the ticket that would send ‘5,000 jobs and £5bn in tourism revenues offshore’.
‘I call on the chancellor to rip up the ticket by persuading his finance minister colleagues to adopt the industry’s recommendations. If he is not able to succeed, he must use the UK’s veto,’ Jenkins said.
At a EU Finance Ministers (ECOFIN) meeting planned for 7 October, the commission intends to present plans to extend VAT rules, tax-news.com reported.
Transport in Britain is currently zero rated as far as VAT is concerned and any change in European rules would override UK legislation.