Commentary

V7.498 Tour Operators' Margin Scheme—time of supply

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.498 Tour Operators' Margin Scheme—time of supply

Part V7 Tax planning | Commentary

V7.498 Tour Operators' Margin Scheme—time of supply

The usual time of supply rules do not apply to margin scheme supplies and in-house supplies sold within a margin scheme package. Instead, each business has to choose one of two methods to determine the time of supply. When a method has been chosen it must be applied consistently, unless HMRC grant written permission to change methods.

The two methods are as follows:

Method one

The tax point is the earlier of the date of the traveller's departure or the first date they occupy accommodation.

Method two

The tax point is the earlier of the tax

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