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Written question asked by Tom Brake (Liberal Democrat) on Friday, 28 June 2019, in the House of Commons. It was due for an answer on Tuesday, 2 July 2019. It was answered by Jesse Norman (Conservative) on Monday, 8 July 2019 on behalf of the Treasury.

Holidays Abroad: EU Countries

Question

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the UK leaving the EU on the (a) level of VAT charged on and (b) subsequent price of holidays for UK citizens travelling to the EU in the event that the UK leaves the EU (i) with and (ii) without an agreement.

Answer

The cost of a holiday is determined by tour operators and travel agents. VAT will be just one of the EU Exit factors that businesses will take into account when pricing holidays.

In the event of no-deal, the Government has prepared legislation that would mean that sales of holidays to the EU would be free of VAT, as is the case now for holidays to the rest of the world. If Parliament passes the Withdrawal Agreement, there will be no change to the VAT treatment of holidays to the EU during the implementation period.

Secondary information

Type
Written question
Reference
270696
Session
2017-19
Transferred
Yes
Subjects
EU countries Prices VAT Holidays abroad Brexit
Contains statistics
Yes
Link
View this Written question on www.parliament.uk