EU’s top court rejects lawsuit over VAT rules for travel agents

The European Court of Justice has rejected a lawsuit filed by the European Commission against the Czech Republic and six other EU countries over their VAT rules for travel agents, the court said in a statement on Thursday. The European Commission sued the EU member states over the fact that travel agents were placed in a separate Vat category which applied not just to travellers but also to other clients. The commission believed this represented a breach of an EU directive. However, the court said the directive’s wording in various languages was too vague, and can be therefore applied to all clients.