The VAT Tour Operators Margin Scheme (TOMS) is a special VAT accounting scheme used to calculate and pay value-added tax (VAT) for certain travel and tour operators. The scheme is designed to simplify the VAT obligations for businesses involved in the sale of travel services.
Under the TOMS, instead of accounting for VAT on the full selling price of the travel package, tour operators calculate and apply VAT only on the margin* they make on the sale.
The TOMS applies to resellers of travel services, as part of a holiday or travel package, such as accommodation, transportation, and other services. It typically covers businesses that act as intermediaries, arranging travel arrangements on behalf of customers, and selling them on as a single package.
By using the TOMS, tour operators can avoid the need to separately account for VAT on each individual element of the travel package. Instead, they apply a single VAT rate to the margin, which simplifies the accounting process.
An experienced accountant for travel agents and tour operators
Do you need help with
- preparing or signing off ATOL Annual Accountants Reports and submission to the CAA
- preparing or signing off Financial Protection Annual Return for ABTA (Association of British Travel Agents)
- ABTA bonding
- ATOL licence annual renewal applications
- management account preparation
- running your business and tax planning
- outsourced payroll
- MTD and cloud accounting services eg Xero
- international trading and tax?
If the answer to any of the above questions is yes, or you are looking for a new accountant who speaks your language and is responsive to your business needs, we have a friendly team, led by our ARA (ATOL Reporting Accountant) who can sort all of these travel accounting services for you. We have several tour operators and travel agencies who have used us for a wide range of accountancy services over the years and we’d like to help you too.
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* The margin is the difference between the total amount charged to the customer and the cost of the travel services provided. If you weren’t sure how to calculate the margin, or other financial KPIs, we also offer business advice to travel agencies and tour operators.