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Changes to the tour operators’ margin scheme

© Copyright LexisNexis 2024. All rights reserved.

24 April 2009

Issue: 4203 / Categories: News , VAT

Summary of Revenue & Customs Brief 27/09

HMRC have published Revenue & Customs Brief 27/09 explaining the changes to be made to the tour operators’ margin scheme (TOMS) in order for it to comply fully with EU law.

The changes are to take effect from 1 January 2010.

Following legal advice the UK has accepted that aspects of the scheme were not implemented properly and gave a commitment to amend it.

The first change relates to supplies to business customers for resale (the 'opt in').

As a concession (set out in paragraph 3.2 of Notice 709/5) HMRC has allowed tour operators who occasionally sell to other travel businesses for onward resale the option of accounting for tax on the latter in the special scheme.

The UK has had to accept that the VAT Directive refers to supplies made to the traveller i.e. the person who consumes the travel and so the...

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Changes to the tour operators’ margin scheme

© Copyright LexisNexis 2024. All rights reserved.

24 April 2009

Summary of Revenue & Customs Brief 27/09

HMRC have published Revenue & Customs Brief 27/09 explaining the changes to be made to the tour operators’ margin scheme (TOMS) in order for it to comply fully with EU law.

The changes are to take effect from 1 January 2010.

Following legal advice the UK has accepted that aspects of the scheme were not implemented properly and gave a commitment to amend it.

The first change relates to supplies to business customers for resale (the 'opt in').

As a concession (set out in paragraph 3.2 of Notice 709/5) HMRC has allowed tour operators who occasionally sell to other travel businesses for onward resale the option of accounting for tax on the latter in the special scheme.

The UK has had to accept that the VAT Directive refers to supplies made to the traveller i.e. the person who consumes the travel and so the...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4203

Categories: News [1] , VAT [2]

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