Tour Operators Margin Scheme (TOMS) ― overview

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of the Tour Operators Margin Scheme (TOMS) and links to further guidance on the subject.

For more detailed commentary on the TOMS, see De Voil Indirect Tax Service V3.591–V3.594.

What is the TOMS?

The TOMS is a mandatory VAT accounting scheme which is used by businesses based in the UK which buy in and resell travel-related services such as:

•
accommodation
•
passenger transport
•
car hire
•
trips
•
excursions
•
services of tour guides

SI 1987/1806; Notice 709/5, para 2.9

These kinds of service are sometimes referred as ‘designated travel services’ or ‘margin scheme supplies’.

The UK TOMS is based upon a European-wide

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