Commentary

V7.491 Tour Operators' Margin Scheme—input tax

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.491 Tour Operators' Margin Scheme—input tax

Part V7 Tax planning | Commentary

V7.491 Tour Operators' Margin Scheme—input tax

Input tax cannot be reclaimed on the direct costs relating to margin scheme supplies.

Example 4

Speedy Tours owns its own coaches but buys in hotel accommodation from an hotelier so that it can sell a package holiday to customers. The package holiday consists of coach transport in Speedy Tours own couches (an in-house supply) and hotel accommodation (a margin scheme supply). The direct cost relating to the margin scheme supplies is the cost of the hotel accommodation and no input VAT can be reclaimed on this cost.

The normal rules for claiming input

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