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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 11080
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I have a company that is tour operator and I’ve been told

Customer Question

Hi , I have a company that is tour operator and I’ve been told that I can reclaim vat on purchases under B2B , I supply services to the business that is outside the uk in EU but sale the packages to them in uk
JA: Have you talked to a tax professional about this?
Customer: yes
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: no
Submitted: 13 days ago.
Category: Tax
Expert:  bigduckontax replied 13 days ago.
Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

You can only do this if your company is itself registered for VAT,

Customer: replied 13 days ago.
I’m VAT registered .
So let me just be clear , I’m tour operator , VAT registered in uk and sale package to EU tour operator , the group will be coming to UK ( so expenses : hotel, dinners etc have VAT & can be reclaimed ? )
2. Is there VAT due on this sale , if yes what percentage?
3. Please confirm if I sale to B2B that is based on EU I don’t have to use TOMS?
Expert:  bigduckontax replied 13 days ago.

You’re acting as a tour operator and must account for VAT using TOMS if you’re an undisclosed agent (that is, acting in your own name) or a principal (see Travel agents (VAT Notice 709/6)) in making either:

  • Margin Scheme supplies
  • other types of supply (for example an in-house supply) packaged or supplied with Margin Scheme supplies (see paragraphs 2.9 and 2.11)

Customer: replied 12 days ago.
Thanks for that and I understand this but apparently , you can also account outside TOMS if you resell services to another business .
I’ve heard that if you sell packages to B2B with 2 or more services you can reclaim vat that are occurred on the services?
My client is EU based client ( big tour operator) that I sell all the packages ( big groups & there are a lot of services : hotel, attractions, transfers, dinners) .
I invoice them in GB , my question is , what’s the vat liability zero rated as the client is based in EU or standard rated or based on the gross margin ?
Customer: replied 12 days ago.
I need to add that all those groups come to uk , so all the services are uk based hotels, dinners, attractions …
Expert:  bigduckontax replied 12 days ago.
You can reclaim any input VAT charged quarterly in the normal way.
Customer: replied 9 days ago.
What about The liability , how do I calculate the vat due on the sale like this ?
Expert:  bigduckontax replied 9 days ago.

Sales to the EU post Brexit are exports, zero rated supplies.

Customer: replied 9 days ago.
Expert:  bigduckontax replied 9 days ago.

Delighted to have been of assistance.