BB/10B/99 VAT—tour operators' margin scheme (TOMS)

Part V16 Forms and other HMRC material

BB/10B/99 VAT—tour operators' margin scheme (TOMS)

BB/10B/99 VAT—tour operators' margin scheme (TOMS)

Business Brief, Issue 10. 22 April 1999

European Court of Justice (ECJ) decision

This business brief explains Customs' position in light of the ECJ decision in C & E Comrs v Madgett & Baldwin t/a Howden Court Hotel [[1998] STC 1189; Part V11]. The hotel, in Torquay, supplies inclusive packages to tourists from the north of England. The packages comprise coach transport between the hotel and customers' home towns, a stay at the hotel for several days and coach excursions. The coach transport is bought-in by the hotel.

Definition of tour operator

The first issue before the ECJ was to determine whether the hotel's activities were those of a tour operator and therefore subject to VAT under the TOMS. The Court supported

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