Recent Developments

VAT doesn't stand still. On this page, we highlight what we consider to be the most important recent developments for those operating in the travel sector.


European developments

Reform of the TOMS rules has long been a goal of the European Commission. Way back in 2002, the Commission launched legislative proposals for change but these were never accepted by the Member States and were withdrawn. The Commission turned to legal actions against individual Member States to tackle some of the areas of uncertainty in the TOMS rule and to promote greater harmonisation in the implementation of the rules. A series of cases at the Court of Justice of the European Union looked at issues such as the inclusion of wholesale supplies in TOMS and the method to be used in calculating VAT due.

The Commission continued to look at the operation of TOMS and in December 2017 published its study on the application of the TOMS rules and on options for reform. A short summary of the study can be accessed here.

Summary of the Commission's TOMS Study

There seems to be a desire on the part of the Commission and the Member States to pursue reform. To this end, the Commission is currently conducting a formal evaluation of the TOMS rules. In May 2020, a public consultation was launched to assist in a consideration of the effects of the current scheme. All interested parties are invited to respond. The consultation is in the form of a questionnaire which can be seen below.

Copy of the TOMS evaluation questionnaire

The deadline for responses to the consultation is 14 September 2020.

B2B supplies in Germany

Germany made changes to its treatment of B2B travel services in December 2019. These changes affect many UK travel businesses. For a summary, please click below.

Changes to the German treatment of B2B travel services


See below for our newsletters covering issues such as Brexit and the treatment of wholesale supplies of travel.

Value Added Travel June 2018

Value Added Travel September 2018

Value Added Travel December 2018

Value Added Travel No Deal Brexit January 2019

Value Added Travel March 2019

Value Added Travel June 2019

Value Added Travel September 2019

Value Added Travel December 2019

Value Added Travel March 2020

Value Added Travel June 2020