We have 10 years experience of advising on the Tour Operators Margin Scheme (TOMS) rules. We know that it can seem complex (and most definitely very different from all other VAT rules!) but we have found that the main complication for most companies is learning how TOMS applies to their specific business. Once this has been done, TOMS can be much more straightforward then you may believe..

So, if you have ever looked at a certain 32 step process and got a bit scared, we promise you that the calculation is 99% of the time nowhere near this lengthy or complex, and that we can help you make sense of it for your business!

The TOMS rules

The TOMS rules apply to businesses that buy-in and re-sell travel, accommodation and certain other services as principal or undisclosed agent. Where TOMS applies, input VAT is irrecoverable on direct costs, and output VAT is payable on the margin made on EU sales. Although in some cases this scheme is a simplification, in many other cases it means an added degree of complexity in understanding the rules and calculating VAT due accurately. Crucially, the application of TOMS can also mean a reduction in a business' margin made on sales.

We know how important the correct application of TOMS is for your business. Where TOMS is a complication or a cost, we look to reach a better outcome either within TOMS (for example, considering the transport company scheme, or optimising a business' in-house split), or in some cases outside of TOMS altogether.

Contact us today to optimise your TOMS position.

Specific TOMS services

TOMS reviews

If you are a business which uses TOMS for some or all of its sales, and have not had a TOMS review for some time (or ever..!) we would highly recommend this. The TOMS rules have changed a fair amount since their inception, and expertise can be sparse, meaning that many businesses are not getting the best out of TOMS.

We have carried out countless TOMS reviews and and very familiar with the quirks and complexities they throw up. We almost always find ways of improving either the figures themselves or the process. We know that this can be a confusing topic, and can help you understand the process better and ensure your calculation is optimal.

TOMS annual adjustment calculations

At present, we are involved in around 80 TOMS annual adjustment calculations per year, and needless to say it is a large part of our lives. Every business we assist is unique, and our portfolio covers EU and global calculations, transport company adjustments, calculations involving in-house and non-TOMS splits, carve outs for agency services, unaligned VAT returns and many more!

The first time we assist you with an annual adjustment, we will produce a calculation that is tailored to your business. This is based on our template spreadsheet which, from, feedback we've had, is straightforward to follow and understand. There will be no 32 step process in sight, or complex formulas to follow, we promise! Please contact us today to discuss TOMS annual adjustment calculations and we will be happy to assist.

TOMS guidance

We provide some general guidance on TOMS in our Articles section. However, there is no substitute for having TOMS advice tailored to your business and circumstances.

We regularly provide TOMS guidance, and this can take many forms - details reports, TOMS "life cycles" and flowcharts, ad hoc advice, TOMS training for your finance team, for example. The scope and format is very much lead by you, as we always seek to ensure that you get from us exactly what you need to feel in control of your VAT and TOMS position.