Commentary

V7.499 Tour Operators' Margin Scheme—end of year TOMS calculation

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.499 Tour Operators' Margin Scheme—end of year TOMS calculation

Part V7 Tax planning | Commentary

V7.499 Tour Operators' Margin Scheme—end of year TOMS calculation

An end of year TOMS calculation is carried out immediately after the end of a tour operator's financial year. VAT is accounted for on a provisional basis during the financial year based on the calculations for the previous financial year.

The year-end calculation is designed to:

  1.  

    •     work out the total margin achieved

  2.  

    •     apportion the total margin between different types of supplies (margin scheme supplies, in-house supplies, agency supplies)

  3.  

    •     apportion the total margin between supplies with different VAT liabilities (standard-rated, zero-rated, outside the scope, exempt)

  4.  

    •     work out the output tax due on margin scheme supplies and packages

  5.  

    •     work out net values for supplies with different VAT

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