Commentary

V7.493 Tour Operators' Margin Scheme—the transport company scheme

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.493 Tour Operators' Margin Scheme—the transport company scheme

Part V7 Tax planning | Commentary

V7.493 Tour Operators' Margin Scheme—the transport company scheme

There is uncertainty regarding the effectiveness of the transport company scheme because it is dependent on wholesale supplies not being covered by the TOMS. According to HMRC guidance at paragraph 3.2 of Notice 709/5/19, supplies made to business customers for subsequent resale by them (wholesale supplies) are not covered by the TOMS. However, the European Court of Justice (ECJ) ruled in 2013 that wholesale supplies should be covered by the TOMS. The ECJ decision, which is binding on the UK and all other EU member states, is referred to in HMRC Brief 5/14 (RCB/5/14,

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