Posts tagged Holiday

Will your holiday cost you more in the future?

Well if the European Court of Justice (ECJ) has its way then the answer to that is yes!

In a ruling handed down by the ECJ certain VAT exemptions secured when Britain joined the EU are going to be abolished which, it has been suggested, could increase the cost of holidays by 3%.

Although the details are in short supply, in this writer’s opinion this can only mean that the cost of a package holiday will be broken down into its constituent parts with VAT being charged on those elements which attract the tax, e.g. meals on board a plane.

This looks like the thin edge of a very wide wedge and we may expect other exemptions previously granted to be removed.