Tour operators' margin scheme (“TOMS”)

V3.591 Overview

Under the normal place of supply rules1, the provision of services such as passenger transport, catering and accommodation to a person travelling within the EU would potentially create a liability for the supplier of those services to be registered for VAT in each of the member states in which the services were provided. To avoid this, EU legislation provides that such services may be taxed2


    (1)     by reference to the profit margin achieved, and


    (2)     in the member state in which the supplier is established or has a fixed establishment from which

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