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Changes to the tour operators’ margin scheme

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...

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