Commentary

BB/21A/98 Tour operators' margin scheme—treatment of discounts funded by travel agents

Part V16 Forms and other HMRC material

BB/21A/98 Tour operators' margin scheme—treatment of discounts funded by travel agents

BB/21A/98 Tour operators' margin scheme—treatment of discounts funded by travel agents

Business Brief, Issue 21. 9 October 1998

Customs and Excise have examined the VAT treatment of discounts funded by travel agents, on package holidays provided by tour operators. Typically these arise when a travel agent sells a package on behalf of a tour operator for a lower price than that advertised in the tour operator's brochure.

It has been common practice in the industry that when a travel agent sells a holiday in this way, the brochure price of the holiday, less the full contracted value of the travel agent's commission,

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial