Commentary

V7.494 Tour Operators' Margin Scheme—business customers who are travellers

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.494 Tour Operators' Margin Scheme—business customers who are travellers

Part V7 Tax planning | Commentary

V7.494 Tour Operators' Margin Scheme—business customers who are travellers

The transport company scheme referred to above involves passenger transport being bought and sold by a transport company. Currently, because the transport company is not selling the transport to a traveller the normal VAT accounting rules apply. However, see V7.493 regarding a possibility that the TOMS, rather than the normal VAT accounting rules, may apply to such supplies in the future.

The TOMS only applies to supplies to travellers. To quote from Article 2 of the Value Added Tax (Tour Operators) Order 1987: 'This Order shall apply to any supply of goods

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