UK Based Global VAT and Tax Compliance Consultants

Air France KLM EJEU Judgment

Airlines must account for the VAT if customers do not show up at the airport. Looking at the judgement is seems that the view taken was that the airline was contracted to supply a seat on a plane. The customer didn’t cancel the seat and the airline didn’t suffer any loss for which it should be compensated, so on the face of it the airline took consideration for a supply – as such VAT was deemed to be due.