The Revenue and Customs Brief 5 (2024) outlines the Tour Operators’ Margin Scheme (TOMS) as a mandatory VAT accounting scheme for businesses involved in selling certain travel services. This includes passenger transport, accommodation, and car hire, where the services are consumed by the customer or on-supplied by the customer. The change in guidance regarding TOMS for wholesale supplies is a result of EU Commission’s intention to review TOMS, with potential significant changes in the future. The current Brief reflects a recent review of HMRC’s approach and guidance.
Source KPMG
