Tour Operators Margin Scheme (TOMS) ― overview

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of:

•
what a tour operator is
•
the effect of the TOMS
•
key terms relating to the TOMS

This guidance note also includes links to other guidance notes which provide more information. For detailed commentary, see De Voil Indirect Tax Service V3.591–V3.594.

What is a tour operator?

For the purposes of the Tour Operators Margin Scheme (TOMS) the term ‘tour operator’ includes:

•
a travel agent acting as principal
•
any other person providing for the benefit of travellers services of any kind commonly provided by tour operators or travel agents

VATA 1994, s 53

The effect of the above is that any person that has a business activity that in any way involves buying in travel services and, without material alteration or further processing, reselling the travel services as principal or as an undisclosed agent, is a tour operator. The following are two examples of tour operators:

•
a coach operator that buys in and, without material alteration or further processing, resells hotel accommodation

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more

Value Added Tax

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more

Corporation Tax

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more

��Ƶ