#62025TJ0221General Court Judgment: TUI Belgium NV and Others v Belgian State – VAT Exemption for Travel Agents Serving Non-EU Destinations (Case T-221/25)

On 25 March 2026, the General Court of the European Union (Fifth Chamber, Extended Composition) issued a judgment in Case T-221/25 concerning TUI Belgium NV and other travel operators against the Belgian State. The case addresses whether Belgium could lawfully apply VAT to services provided by travel agents in connection with travel outside the European Union, invoking the standstill clause under Article 28(3)(a) and Article 370 of the VAT Directives. The central legal question involves the interpretation of transitional provisions in both the Sixth VAT Directive (77/388/EEC) and the recast Directive 2006/112/EC, which permit Member States to retain certain taxation rules in place at the time the directives came into force. Specifically, Annex E(15) of the Sixth Directive and Annex X, Part A, point (4) of Directive 2006/112 allow Member States to continue taxing travel agent services for non-EU travel rather than applying the standard VAT exemption. The dispute arose because Belgium subsequently amended its national legislation without expressly derogating from the exemption regime. The Court examined whether that legislative amendment effectively terminated Belgium's right to invoke the standstill clause, potentially entitling the travel companies to the VAT exemption they had not previously been granted. This ruling has significant implications for EU travel companies operating non-EU tour packages, as it clarifies the conditions under which Member States may retain VAT obligations that deviate from the general exemption framework applicable to travel agent services outside the Union.

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