TOUR OPERATOR MARGIN SCHEME

TOMS is a special scheme for businesses that buy-in and re-sell travel, accommodation and certain other services as a principal or undisclosed agent (that is, acting in your own name).

TOMS is intended to be a simplification measure. It allows VAT to be accounted for on travel supplies without businesses having to register and account for tax in each EU Member State where the services and goods are enjoyed. In practice, the system is extremely complex and anomalies have arisen in how the scheme is implemented across the UK.

There is wide recognition within the EU that TOMS needs reviewing and as one of the most influential pieces of legislation on a tour operator’s profitability, TOMS will remain a strategic priority for UKinbound.

On 4 February, 2020, the European Commission published its roadmap setting out the scope and purpose of the evaluation of TOMS.  The public consultation is due to start in March 2020.

Read the latest position on TOMS in the event of a no deal Brexit here.

Read More

European Commission: The Group on the Future of VAT