Tour Operators Margin Scheme (TOMS) ― operating the scheme

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note examines the operation of the Tour Operators Margin Scheme (TOMS), including methods of calculating and accounting for VAT and other related operational issues.

For an overview of the TOMS more broadly, see the Tour Operators Margin Scheme (TOMS) ― overview guidance note.

For more in-depth commentary on methods of calculation under the TOMS, see De Voil Indirect Tax Service V3.593.

How is VAT calculated and accounted for under the TOMS?

During a year, VAT under the TOMS is provisionally accounted for in each VAT return by applying provisional percentages worked out during a previous year-end TOMS calculation to net sales figures. If the business has just started to use the TOMS (and has therefore been no year-end calculation) then it has to work out a provisional percentage in a reasonable way, possibly using previous trading figures, projections, etc.

A business must then perform a year-end calculation of VAT due under the TOMS immediately after its financial year-end. Having performed this calculation, it must account for the difference

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more

Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more

Owner-Managed Businesses

Furnished holiday lets

Furnished holiday letsThis guidance note sets out the qualifying conditions for a property let to be treated as a furnished holiday let (FHL) for tax purposes and the subsequent tax implications.Whether or not a property qualifies as an FHL can make an important difference to the taxation

14 Jul 2020 11:46 | Produced by Tolley Read more

��Ӱ��