With regular VAT you charge 21% on the full sales price and state the VAT amount separately on the invoice. The customer can reclaim this VAT as input tax. Under the travel agency scheme you charge VAT only on the profit margin on the travel component. That is the sales price minus the purchase price of travel services from third parties. The VAT is not stated separately, and the customer cannot reclaim it.
For travel services from outside the EU, 0% VAT also applies. It is a fundamentally different VAT treatment with direct consequences for quotation, invoice and administration.
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