A delegation from industry association Eventia will meet with HM Revenue and Customs over differing interpretations of the Tour Operators Margin Scheme (TOMS).
The scheme affects calculation of VAT for businesses that buy-in and re-sell travel, accommodation and certain other services as a principal or undisclosed agent.
Brian Kirsch, head of Eventia’s regulation committee and managing director of Event Assured, said around 10 of Eventia’s agency members, plus members of the Hotel Booking Agents Association (HBAA), has formed a TOMS working party to seek greater clarity on the legislation.
“The intention is we gather 19 October for a briefing before a smaller delegation meets with HMRC to discuss the application and the interpretation of TOMS in the events sector. HMRC has hinted that there are areas of the legislation that are open to interpretation and they have agreed it would be good to have agreed procedures and guidelines in the application of TOMS in our sector.
“It could have implications for the way VAT is accounted for in events. It is highly technical and, more than anything else, we need clarity.”