The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Tour operators may not always purchase margin scheme supplies from a third party where they may make the supply using their own resources. These are called 'in-house supplies' and are defined as:
The following provides an overview of the main VAT treatment of supplies of in-house transportation services.
Businesses making supplies including any of the following goods or services will be viewed as a supply of passenger transportation:
It will be viewed as a supply of passenger transportation as the business has pulled together a number of separate elements to supply the transportation services. This type of transportation has not been acquired by the business without material alteration, therefore it cannot be treated as a margin supply under TOMS. The VAT treatment will need to be determined and VAT charged where applicable using the normal VAT rules.
Businesses can make in-house supplies of air transportation in the
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