In Case C-300/12 Ibero Tours GmbH, a reference from the German Bundesfinanzhof, the Advocate General has opined in favour of Ibero, a travel agent, finding that the principle in Elida Gibbs (C-317/94), on the reduction of the VAT tax base where businesses have granted a discount to a consumer also applies to intermediaries such as travel agents, and that that right to reduce the VAT tax base due to a discount granted to consumers applies equally where the service is subject to the margin scheme in Art. 26(2) of the 6th Directive (TOMS).
The judgment of the ECJ is awaited.
Philip Moser QC of Monckton Chambers acted for Ibero.
Raymond Hill of Monckton Chambers acted for the UK, intervening.