Exceeded sales tax threshold? Travel agency!
January 24, 2012 | 25,00 EUR | answered by Dr. Yanqiong Bolik
Good day,
the following issue. I worked as a travel agent for the first time in 2011. The total revenues are well above the €17,500 threshold, so technically I should declare sales tax for 2012.
Now my tax advisor (not a tax consultant) wants to prevent this by deducting all revenues that were pass-through items (ferries, flights) and were resold 1:1 to the customer from this revenue. He believes this will help to keep below the €17,500 threshold.
For travel agencies, do pass-through items count towards revenue or not?
Thank you for your response.
Dear inquirer,
Thank you for your inquiry, which I am happy to answer considering your effort and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information or the ambiguity of information can change the tax result.
Revenue within the meaning of § 1 para. 1 no. 1 UStG is measured by the consideration (§ 10 para. 1 sentence 1 UStG). Consideration is everything that the recipient of the service spends to receive the service, minus the value added tax according to § 10 para. 1 sentence 2 UStG. According to § 10 para. 1 sentence 6 UStG, amounts that the entrepreneur (including travel agencies, as far as they are an entrepreneur within the meaning of § 2 UStG) collects or disburses in the name and for the account of another party are not considered as consideration and therefore not part of the entrepreneur's revenue.
Please note that according to the case law of the Federal Fiscal Court (BFH), the assumption of a pass-through item requires that there are direct legal relationships between two parties, in which the entrepreneur is only an intermediary, like a payment agent, (consistent case law, see e.g. BFH judgment of September 1, 2010 V R 32/09, BFHE 231, 315, BStBl II 2011, 300, under II.3.b dd, with further references). For reasons of clarity and uniform taxation, a clear proof of the entrepreneur's activities as an intermediary for the parties between whom the direct legal relationships exist and for whom the intermediary acts is also required (see BFH ruling of February 27, 1989 V B 75/88, BFH/NV 1989, 744). This generally requires that the payer and the payee each know the name of the other and the amount paid (see BFH ruling in BFH/NV 1989, 744, with further references; on the predecessor provision § 5 para. 3 UStG 1951, see BFH judgment of December 4, 1969 V R 104/66, BFHE 97, 449, BStBl II 1970, 191, with further references).
I hope I was able to assist you.
If there is still uncertainty, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 9332 2657
Email: info@zdbz.de
www.steuerberatung.zdbz.de
