The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides details of the TOMS calculations that are required whilst the reduced rate applies to supplies covered by the TOMS. This guidance note should be read in conjunction with the following notes:
Hospitality industry ― temporary reduced rate from 15 July 2020 to 31 March 2021
Tour Operators Margin Scheme (TOMS) ― overview
TOMS and in-house supplies
There is no change to the simplified calculations as they can only be used in respect of standard-rated supplies. Businesses that make supplies at the reduced rate, zero rate or outside the scope of VAT cannot use this calculation.
These tables have been extracted from HMRC Notice 709/5.
Note: Only use this section if the business has packages or parts of packages being apportioned by the market value of the in-house element of the package. On completion of all the steps M1–M5, the steps in the cost-based calculation below must be followed, taking forward the figures from this section as instructed:
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