Enclosed is a blog entry that was posted onto the ICAEW Tourism and hospitality Group, which covers potential legislative changes to TOM’s once the country exits the EU:-
The Tour Operator Margin Scheme (TOMS) was introduced in 1988, as a simplification for EU vendors of travel. VAT is payable on the margin and not on the full selling price and therefore there is no VAT recovery by the vendor on travel costs. The margin VAT is payable in the member state of establishment. Not everyone would agree that TOMS is simple, as it has become unnecessarily complicated, but the simplification is the avoidance of compliance difficulties of supplying services enjoyed in multiple states. No TOMS would probably mean the necessity of a vendor to register for VAT in multiple states and navigating each of those states VAT compliance issues.