Measure
The government has published a call for evidence to support a review of the VAT treatment of travel services, including the operation of the Tour Operator’s Margin Scheme (TOMS). It seeks views on whether TOMS remains fit for purpose and should be retained or reformed, including whether it should be made optional. The intention is that the evidence will inform proposals to simplify administration, support fair taxation, and reduce distortions.
Tour operators, travel agents and other businesses using TOMS.
The call for evidence closes on 31 January 2027.
The call for evidence offers the travel industry an opportunity to inform potential reform of the VAT treatment of travel services, addressing longstanding concerns about the complexity and appropriateness of TOMS.