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ECJ VAT Travel Decisions Released – Wholesalers to use TOMS?

By September 26, 2013January 9th, 2024Uncategorized|VAT news

Various language versions of the decisions were released this morning. We are working our way through these to understand the full ramifications.

Our initial review suggests that TOMS should apply to wholesale transactions. This could have serious implications for UK tour operators using the transport company arrangement.

For some tour operators the increased VAT cost could be enough to render the business unviable. Where this is the case tour operators will be forced to review their business to determine if they can adopt an alternative model such as relocating the business to a non-EU location (this can take on many forms to suit the commercial circumstances of the business in question but key is real substance existing overseas).  Non EU tour operators selling EU holidays are not currently required to account for any VAT on sales.  Alternatively the business may prefer to continue operating in the UK but under a disclosed agency model or potentially the alternative ‘Agency Option’ which facilitates the use of net rates.

We will be providing more narrative on the decisions shortly. However, if you do have any questions or would like to discuss the implications in more detail please contact Martyne Pearson on 01962 735 350 or via email at

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