Germany excludes UK tourist operators from VAT TOMS

  • Jul 21, 2021 | Avalara

Following the end of the UK Brexit transition period after 31 December 2020, the German Ministry of Finance has taken the position that the special VAT scheme for travel agents (also known as the Tour Operator Margin Scheme (TOMS)), no longer covers transactions by UK travel agents.

TOMS is a special scheme for businesses that buy in and resell travel, accommodation and certain other services as a principal or undisclosed agent. TOMS is a simplification measure in that it treats a bundle of supplies made to the same person as a single supply made in the UK. In most respects it continues the principles of the EU TOMS.

Whilst the UK has confirmed a UK-based TOMS to continue now that the UK has left the EU, in the longer term there might be a requirement to register for VAT with individual EU states. Germany’s action indicates that EU states will impose this, and UK travel agents should consider additional EU VAT registrations for their sales to UK consumers of EU travel and holidays.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Avalara Author Avalara
Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, excise, communications, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in the U.K., Belgium, Brazil, and India.
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