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Federatie van Belgische Autobus en Autocarondernemers en reisorganisatoren

FBAA

De studie, de bescherming, verdediging en ontwikkeling van de beroepsbelangen van de Belgische autobus- en autocarondernemingen en reisorganisatoren op nationaal, internationaal en regionaal vlak.

Lobbying Activity

Response to VAT package on travel and tourism

11 Aug 2025

The current VAT treatment of passenger transport by coach varies significantly across EU member states. While some apply standard rates, others offer reduced or zero rates. This fragmented approach imposes a disproportionate administrative burden on the sectorparticularly for operators active in multiple countries. From a policy perspective, coach travel aligns closely with the EUs sustainability and climate objectives. Coaches achieve high occupancy rates and generate exceptionally low emissions per passenger kilometer. A single full coach can replace up to 30 private cars, directly contributing to reduced congestion and improved air quality. Despite these benefits, coach transport is often taxed more heavily than air travel, which is considerably more damaging to the environment. This contradiction undermines the EUs commitment to promoting greener modes of transport and sends mixed signals to both operators and consumers. Moreover, the complexity of navigating divergent VAT regimes leads to high compliance costs for small and medium-sized enterprises. Errors in VAT registration, declaration, or recovery can result in substantial financial penaltiesdiscouraging cross-border operations and stifling growth in a sector that has strong potential to support EU mobility goals. A harmonized VAT system for coach transport would reduce administrative overhead, enhance legal certainty, and foster a more integrated European market. Aligning national procedures for VAT registration, declaration, and refund mechanisms would not only support fair competition but also incentivize sustainable travel choices. Policymakers have a unique opportunity to correct this imbalance and reinforce the EUs commitment to climate-friendly transport. A zero VAT rate for coach travelapplied consistently across member stateswould be a meaningful step toward that goal.
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