This paper aims to present a special procedure of the taxation of travel agencies, or tour-ism agencies and entities involved in organization of travel, which procedure has be-come mandatory with Croatia’s joining the European Union on 1 July 2013. Although the VAT calculation under a special procedure generated doubts in the beginnings for the EU Member States registered legal entities which organize and sell travel services, travel packages and associated travel arrangements, the passage of time has shown that this taxation method has simplified taxation in their operations. The harmonisation of laws and regulations of the Republic of Croatia with the EU Council Directive 2006/112 on the special VAT taxation procedure has additionally facilitated the operation of local travel agencies. On the case study of Aladdin DMC travel agency, examples are shown of the calcula-tion of rendered services under a regular and special taxation procedure, with the focus being put on the operations in the segment of airline tickets and in the segment of pack-age travel packages.