Tour Operators Margin Scheme: a special HMRC scheme for businesses that buy-in and re-sell travel, accommodation and certain other services as a principal or undisclosed agent (that is, acting in their own name). In the UK this scheme is known by the abbreviated term ‘the TOMS’. HMRC describes the TOMS as ” …a simplification measure. In many cases it enables VAT to be accounted for on travel supplies without businesses having to register and account for tax in each Member State where the services and goods are enjoyed.”

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