European E.U. VAT & TOMS for Travel and Hospitality - Expert help from Antravia

Learn how EU VAT, TOMS, and ViDA reforms affect travel agents and tour operators across Europe. Practical compliance guidance from Antravia Advisory.

From OSS registration to ViDA digital reporting, Antravia helps European and non-EU travel businesses stay compliant across Member States.

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E.U. VAT & TOMS -
How Antravia helps

Where Travel meets Smart Finance

VAT Health Check

A short review of supplies, invoicing, and filings to highlight risks and missed recovery.

Non-resident VAT, fiscal reps, return preparation, corrections.

Employee travel, events, exhibitions, and supplier invoices across the UK/EU

See E.U. VAT Reclaim for more info.

E.U. Registrations & filings

E.U. VAT Reclaim

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E.U. VAT & TOMS: FAQs, Articles & Expert Insights

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EuroVAT.tax – Frequently Asked Questions

What is EU TOMS?

EU TOMS (the Special VAT Scheme for Travel Agents) applies to EU-established travel businesses reselling packages with third-party services (e.g., accommodation, transport) consumed within the EU, where the operator acts as principal or undisclosed agent. VAT is charged only on the margin (selling price minus direct acquisition costs), simplifying multi-jurisdiction compliance. It's a single supply taxed at the operator's establishment. Example: A French tour operator selling a €1,200 EU package with €800 costs pays VAT on €400 only.

Reference: Council Directive 2006/112/EC, Articles 306–310.EUR-Lex

Who must register for VAT under EU TOMS?

Any EU-established travel company making margin-making supplies of travel packages to EU travellers (B2C or qualifying B2B) must apply TOMS and register for VAT in its home Member State. No distance-selling thresholds apply within TOMS—it's based on turnover and activity. Non-EU sellers can't use TOMS and may need OSS or local registrations.

Reference: EU VAT Directive, Article 306.EUR-Lex

How is EU TOMS different from U.K. TOMS?

EU TOMS is limited to services enjoyed in the EU and taxed at the operator's home state's rate, while UK TOMS covers worldwide services for UK operators with zero-rating for non-UK enjoyment. Post-Brexit, UK sales to EU customers are exports (zero-rated), but EU operators face origin-based taxation disadvantages for non-EU sales. A 2025 EC consultation is reviewing distortions, but no reforms yet.

Reference: EU VAT Directive Articles 306–310; EC Consultation July 2025.Taxation & Customs Union

Can non-EU businesses sell travel in the EU without VAT registration?

Generally no. Non-EU sellers must register for VAT in the Member State where services are consumed (or use OSS for B2C under €10,000 thresholds), as TOMS isn't available to them. Exports to non-EU customers may be zero-rated, but EU-facing sales trigger local rules. Tip: Platforms like Booking.com often handle deemed-supplier VAT under upcoming ViDA.

Reference: EU VAT Directive, Articles 44–59 (place of supply).EUR-Lex

What is ViDA and why does it matter?

VAT in the Digital Age (ViDA), adopted March 11, 2025, modernizes EU VAT with digital reporting, e-invoicing, and "deemed supplier" rules for platforms (e.g., Airbnb, Uber handling short-term rentals/transport VAT). For travel intermediaries, it means real-time reporting from 2028 and mandatory platform liability from January 2030 (voluntary from July 2028). Prepare now: Upgrade APIs for DRR compliance to avoid penalties up to 15% of turnover. Phased rollout continues to 2035.

Reference: ViDA Package (Directives 2025/XXX); Official Journal March 25, 2025.EC Taxation

Are B2B sales covered by EU TOMS?

Yes, if the operator acts as principal or undisclosed agent—ECJ rulings confirm TOMS applies to B2B supplies to businesses for resale or their own non-business use (e.g., corporate events). Pure disclosed agency B2B falls outside, using reverse charge and general place-of-supply rules. Always document status clearly to avoid reclassification.

Reference: EU VAT Directive Article 306; ECJ Case C-516/14 (Barlis).EUR-Lex

How do I calculate the margin for EU TOMS?

Margin = Total selling price (excluding VAT) minus direct costs of third-party services (acquired VAT-exclusive). VAT is then due on this margin at your home Member State's standard rate—e.g., 20% in France, 21% in Spain, or 23% in Portugal (rates as of 2025). It's not apportioned by destination; the whole supply is taxed at establishment. Use annual adjustments for accuracy.

Reference: EU VAT Directive Article 308; Rates via EC Report.EUR-Lex; Tax Foundation 2025 Rates

Can I reclaim input VAT on costs used within TOMS?

No on direct margin costs (blocked). Partial recovery on overheads is allowed via your home state's proportional deduction method, based on the ratio of taxable to total inputs. Some states (e.g., Germany) offer sector-specific adjustments, so consult local rules.

Reference: EU VAT Directive Article 309.EUR-Lex

What records are required for compliance?

Maintain itemized records of: selling prices, supplier invoices (with VAT IDs), direct cost breakdowns, proof of EU consumption (e.g., GPS data, tickets), and audit trails linking packages to destinations. Retain for 10 years; digital formats accepted under ViDA. Non-compliance risks penalties up to 10% of turnover per Member State.

Reference: EU VAT Directive Article 310; EC Guidelines.EUR-Lex

How can Antravia help?

Antravia specializes in VAT position reviews, TOMS margin audits, and multi-jurisdictional registrations. Explore our guides on VAT.travel for ViDA prep and 2025 TOMS updates. Contact us for a free compliance checklist.

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Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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