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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5015
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Dear Sirs I am running a diving school and we are VAT company. I

Customer Question

Dear Sirs
I am running a diving school and we are VAT company.
I want to organise trip to Mexico for divers with Thomson Holidays. Cost £1300 0% VAT.
I want to charge for it £1500. In this price is included trip to Mexican ruins (will be paid directly to organiser in Mexico) - £100.
How much VAT do I have to pay do HMCR?
Is there any VAT on holidays abroad?

Kind regards
Krzysztof
Submitted: 4 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 4 years ago.

Hello and welcome to the site. Thank you for your question.

There is no VAT on holidays abroad.

You may wish to read VAT Notice 709/5 covering Tour Operators Margin Scheme.

As a tour operator based in the UK, you only account for VAT on the margin you make on your margin scheme supplies, that is, the difference between the amount you receive from your customer (including any amounts paid on behalf of your customer by third parties) and the amount you pay your suppliers.

In your case, your margin will be £100 and VAT will be payable on this amount.

More information on Tour Operators Margin Scheme can be found here
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000501&propertyType=document#toc


I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert:  taxadvisor.uk replied 4 years ago.

Hello Krzysztof

I notice you have viewed my response to your original question on how much VAT you have to pay to HMRC if you organise a trip to Mexico for divers (JACUSTOMER-x2q2xwz4- Last Viewed on 08/10/2013 at 14:09).

Just checking to see if you have any issues relating to your question that I may not have addressed. Please let me know if I can be of further assistance.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.