From 1 January, a new UK Tour Operators’ Margin Scheme (Toms) will apply following the UK’s exit from the EU scheme.
Toms applies when a company buys and resells certain travel services, either as a principal or undisclosed agent. It then has to pay VAT on the margin, or the difference between the selling price and the cost of the travel service.
In a client update, Chris Photi, head of travel and leisure at accountants White Hart Associates, said:
“The main change is that the VAT will only need to be paid on UK holidays and UK travel, compared with the whole EU at present.
