common - knowledge - no VAT for farmers

Защо немските фермери не трябва да плащат ДДС по фактурите за транспорт на работници издавани от Почивка БГ

These are the results of my research about VAT and they explain things to detail.

VAT for EU transport has to be paid proportionally in the countries in which the transport has occurred. This is done by the transport companies, and not by the tour operators or the sellers of travel services. Why? There are several reasons:
1. Logically, tour operators cannot know and calculate the percentages of each route by country and include it in an invoice. They sell many tickets from many transport companies.
2. If tour operators had to include VAT in the invoices they would have to pay it. However, they cannot return the VAT from the cost to the transport company, because some of the VAT needs to be recovered from a foreign country (for example Holland), which is not possible in the EU. This means they would not be able to operate.
3. This is why the EU law provides with the TOMS scheme in this case (Tour Operators Margin Scheme). This scheme is incorporated in Bulgarian law and works in the following way: "The scheme works by imposing a VAT charge on the gross margin made by the tour operator. This VAT is paid by the tour operator in the member state in which he is conducting his business. No recovery of VAT on the costs of the travel supplied to the tour operator is possible". Now, the last sentence which is in bold explains why there can't be any VAT on the invoices issued by tour operators. I have spoken to 2 accountants in Bulgaria and they also told me about the TOMS scheme in Bulgaria. They told me that the invoices issued by tour operators DO NOT INCLUDE INFORMATION ABOUT VAT. I have also confirmed in Bulgaria with the companies that we used for the transport that THEY PAY VAT IN GERMANY. They have licences for regular bus lines in Germany and cannot avoid paying the tax there.

Summary:
- Bus companies pay the VAT in the EU states through which they transport
- Tour operators issue invoices WITHOUT VAT

Actions that should follow:
- The accounting company that Hinrich uses should find this TOMS scheme in German law and should give another official statement
I strongly suggest that they inform themselves about:
- TOMS scheme (attached)
- pages 26 and 27 from Regular Interurban Coach Services in Europe... (attached)
- VAT in Germany - IRU (attached) and call the tax office responsible for Bulgaria mentioned in the document (Finanzamt Neuwied, Augustastr. 54, 56564 Neuwied; Tel: (+49 2631) 910-0; Fax: (+49 2631) 910-270; They would probably give them the necessary information there