CFE Opinion Statement on the VAT Travel Agents Scheme Consultation

CFE Tax Advisers Europe has published an Opinion Statement responding to the European Commission Public Consultation on the special VAT scheme for travel agents.

The CFE is of the view that there is a need to reform the TOMS scheme, for a number of reasons, including:

  • the complexities and rigidities of the current rules (e.g. the need to calculate the margin on a transaction by transaction basis; no machinery to reduce claims on account of losses; difficulties on payments on account);
  • distortions caused by business customers being unable to deduct input tax; and
  • the entire margin being taxed at the standard rate when the components would otherwise be taxed at lower rates.

CFE consider that the disadvantages of the scheme could be minimised by making the scheme optional.

The full Opinion Statement can be viewed here.



The Malta Institute of Taxation is a member of CFE Tax Advisers Europe, and participates in and contributes to discussions of the various committees involved in the preparation of CFE Opinion Statements.