.png)
.png)
There will be no alterations to the UK’s handling of the tour operators margin scheme (TOMS) following a legal ruling in Europe, HMRC have confirmed.
The Court of Justice of the European Union (CJEU) recently heard infraction proceedings against Spain, Poland, Italy, Czech Republic, Greece, France, Finland and Portugal in connection with the country’s operation of the TOMS.
The court ruled that wholesale supplies should be covered by the scheme and calculations must be carried out on an individual transaction basis.
There will be no alterations to the UK’s handling of the tour operators margin scheme (TOMS) following a legal ruling in Europe, HMRC have confirmed.
The Court of Justice of the European Union (CJEU) recently heard infraction proceedings against Spain, Poland, Italy, Czech Republic, Greece, France, Finland and Portugal in connection with the country’s operation of the TOMS.
The court ruled that wholesale supplies should be covered by the scheme and calculations must be carried out on an individual transaction basis.
The decision is binding to all EU member states – but businesses in the UK should continue to follow existing guidance, according to the Revenue, which plans to make no changes at present.
The EU Commission intends to carry out a review that could result in a significant revamp of the TOMS. Modifications that would later need to be modified or reversed would be disruptive and costly for firms, said the taxman.
All businesses are entitled to to apply direct effect and operate the TOMS in line with the CJEU’s decision. Some tour operators may gain a benefit from including wholesale supplies within the scheme.
