What is the Tour Operators’ Margin Scheme?
TOMS applies to supplies of ‘designated travel services’ made by ‘tour operators’.
A designated travel service is defined in law as goods or services that are acquired by way of business and then supplied to a traveller without material alteration or further processing.
A tour operator is defined as a person who provides designated travel services.
To calculate the VAT, 1/6 of the margin on designated travel services is declared to HMRC. The margin is the selling price of the supply, less any direct costs.
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