VAT: landmark TOMS ruling for Med Hotels

The upper tax tribunal has heard the appeal in the case of Secret Hotels 2 against a first-tier tribunal decision that had favoured HMRC, says Graham Elliott

The issue was whether the appellant (now called Med Hotels) bought and sold hotel bookings as a principal or acted as an agent for the hotel and its customer in each case.

If the former, the supplies fell within the Tour Operators’ Margin Scheme (TOMS), and UK VAT was payable on margins related to hotel stays within the EU.

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