When the subject of the Tour Operators Margins Scheme (TOMS) arises, the response is usually expressionless or one of dismay. With this ‘VAT simplification’ comes a whole host of complexities and problems for businesses. Throw in Brexit and potential EU reforms, and the sector faces an uncertain future.

So, what is TOMS?

TOMS is a mandatory EU-wide simplified VAT accounting scheme for tour operators that buy-in and re-sell travel services such as passenger transport and hotel accommodation. The underlying intention of the scheme is to provide a simplification measure to facilitate trade.