Tour Operators Margin Scheme (TOMS) ― structuring considerations
Value Added Tax
Guidance
The Tour Operators Margin Scheme (TOMS) applies to businesses that buy in and resell travel services, without material alteration or further processing, as principal or undisclosed agent. See the Tour Operators Margin Scheme (TOMS) ― overview guidance note.
Points to consider relating to the TOMS include:
- •
exercising an option to account for VAT on certain supplies of travel services outside the TOMS
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supplies of travel services to business customers
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in-house supplies of travel services
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commission earned from selling travel services as a disclosed agent
For detailed commentary, see De Voil Indirect Tax Service V3.591–V3.594.
Exercising an option to account for VAT on certain supplies of travel services outside the TOMS
Subject to the relevant conditions being met, it is possible to account for VAT on the following categories of supplies outside the TOMS:
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incidental supplies of travel services
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supplies of travel services to business customers that intend to make an onward supply of the travel services (wholesale supplies)
SI 1987/1806, Art 14; Notice 709/5,
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