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HMRC Updates TOMS Guidance for Tour Operators: Impact on B2B Wholesale Supplies

  • The Tour Operators Margin Scheme (TOMS) is a mandatory accounting scheme for businesses in the travel industry
  • HMRC updated guidance on TOMS, stating that wholesale supplies should be covered by TOMS
  • HMRC issued Revenue & Customs Brief (RCB) 5 (2024) to clarify the treatment of business-to-business (B2B) wholesale supplies
  • Tour operators can opt out of including B2B wholesale supplies in TOMS
  • Major changes to TOMS in the UK may be on the horizon, influenced by an ongoing EU review
  • Currently, non-EU operators have an advantage as their services in the EU do not attract VAT
  • HMRC’s latest guidance doesn’t have a significant impact on UK businesses, but major changes may occur in the future.


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.


VAT news
VAT news