VAT & The Tour Operators’ Margin Scheme (TOMS) - Understanding In-House Supplies

Introduction

The Tour Operators’ Margin Scheme (TOMS) is a specialised VAT accounting scheme used by UK businesses that buy in and resell travel-related services. Under TOMS, VAT is not charged on the full selling price of the travel package. Instead, VAT is calculated only on the profit margin earned by the supplier.

In this short webinar, Jasmine Martin, VAT specialist at MHA, will provide accountants and tax advisers with a practical overview of in-house supplies within TOMS, including how they arise and how VAT should be calculated.

What You Will Learn

This short webinar will cover the following:

• Understanding In-House Supplies
  • What constitutes an in-house supply within the TOMS framework
  • How in-house supplies differ from bought-in travel services
• Examples of In-House Supplies
  • Coach operators providing their own transport
  • Event and conference organisers supplying facilities or services directly
  • Tour guides employed directly by the business
  • Hotels owned or operated by the tour operator
• VAT Implications
  • How in-house supplies are treated differently under TOMS
  • When standard VAT rules apply instead of the margin scheme
  • The impact on VAT calculations and reporting
• Worked example detailing how VAT is calculated where in-house supplies are included in a TOMS package