Commentary

V7.492 Tour Operators' Margin Scheme—output tax

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.492 Tour Operators' Margin Scheme—output tax

Part V7 Tax planning | Commentary

V7.492 Tour Operators' Margin Scheme—output tax

Output tax is accounted for on the difference between the income from margin scheme supplies and the VAT inclusive direct costs relating to margin scheme supplies. The margin is calculated at the end of the financial year of the business, rather than at the time each supply is made, with VAT accounted for on a provisional basis during the financial year.

According to HMRC guidance at paragraph 5.12 of Notice 709/5/19, the TOMS calculation should not be carried out on an individual transaction basis. Instead, HMRC require tour operators to carry out their TOMS calculation

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