As a consequence of a very important ECJ ruling, Germany has extended the application of the Tour Operator Margin Scheme to B2B activities and – with regard to the calculation of the margin VAT – replaced the global margin by a single margin approach. Surprisingly, this major change comes along with an explicit exclusion of non-EU providers of travel services from the scheme. This puts competitive pressure on German resident travel agents as well as administrative pressure on non-EU travel agents, which now may have an obligation to VAT register in Germany.