As the EU Commission’s review of the Tour Operators Margin Scheme stalls, Damon Wright explores the problems that the current rules present for UK travel businesses
Tour Operators Margin Scheme (TOMS)
The supply of travel services (accommodation passenger transport etc) is subject to VAT in the European Union (EU) in accordance with the standard place of supply of services rules governed by the EU VAT Directive 2006/112 TOMS as amended via the 2010 VAT Package (Articles 43 to 59b).
However where a supplier buys the travel service in and resells it in its own name to a consumer without alteration an override applies and VAT is due in accordance with the Special Scheme for Travel Agents...
