Commentary

V7.497 Tour Operators' Margin Scheme—the place of supply and a tour operator's purchases

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.497 Tour Operators' Margin Scheme—the place of supply and a tour operator's purchases

Part V7 Tax planning | Commentary

V7.497 Tour Operators' Margin Scheme—the place of supply and a tour operator's purchases

Table 1 above summarises the place of supply rules in relation to a tour operator's sales to travellers. The normal place of supply rules apply to the tour operator's purchases from suppliers. In Examples 5, 6 and 7 the hoteliers' supply of hotel accommodation to the tour operators is subject to VAT based on where each of the hotels was located. This is because hotel accommodation is a service relating to land.

Example 8

Michael, an Italian hotelier sells hotel accommodation to EU Hotels in Example 5

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