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Commentary

Tour operators margin scheme

11 Denmark
11 Denmark | Commentary

Tour operators margin scheme

11 Denmark | Commentary

Special schemes

Tour operators margin scheme

Denmark operates a special margin scheme for travel agents and tour operators, as required by the Principal VAT Directive.

The scheme, which is known as the tour operators margin scheme (TOMS), allows affected businesses to fulfil their VAT accounting and reporting obligations without having to register for VAT in every EU member state to which their customers travel. It achieves this by:

  1.  

    •     applying VAT only to the margin between the VAT-inclusive buying and selling prices;

  2.  

    •     allowing automatic relief for VAT charged by suppliers (including foreign suppliers) – VAT incurred on overhead expenses

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