VAT tax benefit for night trains (BackOnTrack)

A 0% VAT rate and reduced track access charges for night trains could help Europeans save on travel costs, whilst also cutting back on emissions. In this briefing paper, Back-on-Track Europe and Transport & Environment are showing how the EU and Member States can easily reduce the price of a cross-border night train ticket and push for the creation of new lines.

Joint study by Back-on-Track.eu and Transport & Environment.

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We found that setting a 0% rate of value-added tax (VAT) on cross-border routes and reducing the track access charges (TAC) can lower the ticket price by between 3% and 48% depending on the passenger profile scenario taken. On average, the ticket price reduction for all types of users on European lines studied is 15%.

We conclude that European countries should also temporarily or permanently exempt night trains operators from TAC to incentivise railway operators to create new lines. This exemption would be particularly welcome to allow rail operators to acquire or refurbish night train rolling stocks. Back-on-Track Europe and Transport & Environment are calling on Member States and the EU to set up the relevant binding measures to achieve this price reduction and kick-off the market of European cross-border night trains

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