Tour Operators’ Margin Scheme (TOMS) VAT
The Tour Operators' Margin Scheme (TOMS) is a vital aspect of the Value Added Tax (VAT) system for businesses in the travel industry. Since 1 January 2021, TOMS has undergone significant changes, including the temporary 5% reduced rate of VAT. Understanding these changes is crucial for compliance and financial planning. This page aims to guide tour operators in understanding and applying TOMS, ensuring compliance with all relevant laws and regulations, and offering a comprehensive service tailored to the unique needs of the travel industry.
Navigate the complexities of the Tour Operators' Margin Scheme with our specialised VAT services. Schedule a consultation with our experts today to ensure compliance, accuracy and efficiency in your VAT management. Call us at 0330 8284 282 or fill out our contact form.
Overview of TOMS
TOMS is a special VAT scheme designed to simplify the tax process for businesses that buy and sell travel, accommodation and certain other services. It applies to businesses that make supplies where the customer receives a benefit from travel services. The legal framework governing TOMS is outlined in the VAT Act 1994 and the VAT Regulations 1995. This scheme is essential for tour operators, travel agents and other businesses in the travel sector, as it affects how VAT is calculated and reported.
Does TOMS apply to this transaction?
Take a look at our handy flowchart to see if TOMS should be used for a transaction.
Understanding TOMS
TOMS covers a wide range of supplies, including accommodation, passenger transport and tour guide services. It operates by calculating VAT on the margin made on the supply of travel services. Margin Scheme supplies are those where VAT is accounted for on the margin, including travel services both within and outside the UK. Understanding the nuances of what TOMS does and does not cover is essential for accurate VAT reporting. Our service provides detailed guidance on these aspects, ensuring that your business complies with all relevant regulations.
How The VAT People help with TOMS
Our service begins with a comprehensive assessment and consultation to understand your specific needs. We provide tailored advice and guidance on implementing TOMS, including calculations and compliance with all legal requirements. Our ongoing support ensures you stay up to date with changes in VAT laws and regulations. Whether you are new to TOMS or need assistance with existing processes, our team of experts is here to assist you every step of the way.
Special rules and considerations
Determining taxable turnover for VAT registration or de-registration is crucial under TOMS. Our service guides you on what VAT can be reclaimed and what cannot. We also explain the place of supply for different travel services and help you determine the tax point for Margin Scheme supplies. Special considerations such as the impact of TOMS on in-house supplies and margins during the temporary reduced rate period are also covered. Our team ensures that you understand all the special rules and considerations that apply to your business, providing peace of mind and confidence in your VAT reporting.
Why choose us?
Our team of experts specialises in VAT laws and the travel industry. We offer customised solutions to each business, ensuring compliance with all legal requirements. Our clients' positive feedback is a testament to our commitment to excellence. With our service, you gain access to a wealth of knowledge and experience, tailored support and the assurance of compliance with all TOMS regulations. We are dedicated to your success and work closely with you to achieve your business goals.
Differentiating between supplies to business customers for resale and consumption is essential. Our service offers guidance on handling wholesale supplies outside TOMS. Whether you are dealing with business customers or wholesale supplies, our team provides the insights and support you need to manage these aspects of TOMS effectively.
Special rules apply to cruises and connected flights. We also provide information on compatibility with other VAT schemes like the Annual Accounting Scheme and explain VAT invoicing rules under TOMS. From cruises to invoicing requirements, our service covers all additional considerations that may apply to your business, providing comprehensive support and guidance.
Contact The VAT People for tailored TOMS consultancy
TOMS is a complex area that requires careful consideration and understanding. Our service is designed to provide comprehensive guidance to tour operators, ensuring compliance and efficiency. With our expert support, you can navigate the complexities of TOMS with confidence and ease.
For further inquiries, please contact us at 0330 8284 282, or fill out our contact form.
FAQs
What is the Tour Operators' Margin Scheme (TOMS)?
TOMS is a special VAT scheme for businesses that buy and sell travel, accommodation, and certain other services. It simplifies the VAT process by calculating VAT on the margin made on the supply of travel services.
Who is eligible to use TOMS?
Businesses that make supplies where the customer receives a benefit from travel services are eligible to use TOMS. This includes tour operators, travel agents and other businesses in the travel sector.
Can I reclaim VAT under TOMS?
Certain VAT can be reclaimed under TOMS, while some cannot. Our service provides comprehensive guidance on what can and cannot be reclaimed, ensuring compliance with all relevant regulations.
How can your service assist me with TOMS?
Our service offers comprehensive support for all aspects of TOMS, including understanding the scheme, implementing it in your business and ensuring compliance with all legal requirements. We provide tailored advice, practical guidance and ongoing support.