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EU Delays Overhaul of Tourism Operators VAT in TOMS Scheme Until 2024

  • The EU’s review of the tourism VAT regime has been delayed until at least 2024.
  • The review aims to update the 40-year-old scheme to reflect modern online buying, intra-EU transport, and the effects of Brexit.
  • The review is part of the EU Tax Action Package reforms announced in 2020.
  • The review is considering reforms to the special scheme for travel agents, VAT rules on passenger transport, and the exemption on the supply of goods to non-EU travelers.
  • The Tour Operators Margin Scheme (TOMS), introduced in 1977, treats all pan-EU transactions made by a tour operator as a single supply in their country of residence.
  • TOMS reduces the obligation for tour operators to VAT register in all EU states where they are buying and reselling holiday services.
  • Issues with TOMS include unfair competitive advantage for non-EU operators, distortions in B2B travel, and varying applications of the rules by member states.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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