VAT Fact Check 10

The VAT exemption for financial services was never intended to become permanent. When it was introduced in 1977, taxing the sector was technically unfeasible. It was a practical compromise, not a policy choice. Nearly five decades later, that compromise remains largely unchanged, not because the original logic still holds, but because no one has found the political will to address what comes next.

Tourism remains one of the pillars of the European economy, contributing to around 10% to the EU’s GDP and supporting millions of jobs across hospitality, transport and other related sectors. Although traditionally characterised by strong seasonality, tourism has increasingly evolved into a year-round activity, driven by changing consumer behaviour, improved connectivity and the rise of digital booking platforms.