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

Learn how EU VAT, TOMS, and ViDA reforms affect businesses (including 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.

Not a Travel business but interested in EU VAT? click here

Not based in the E.U. but looking for E.U. VAT Reclaim? Click here

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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

“What’s Next” Consultation

Not sure where to start?

Book a free 15-minute call with Antravia. We’ll outline your current exposure and the simplest route to full compliance

Not based in E.U.? See Antravia’s dedicated VAT & TOMS pages for the United Kingdom and International locations

International VAT & TOMS

Understanding Global VAT, GST, and Consumption Tax Rules Beyond U.K. and Europe

UKVAT.tax

U.K. VAT and TOMS focus page (domestic + outbound travel)

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

CHAPTER 3

Special scheme for travel agents

Article 306

1. Member States shall apply a special VAT scheme, in accordance with this Chapter, to transactions carried out by travel agents who deal with customers in their own name and use supplies of goods or services provided by other taxable persons, in the provision of travel facilities.

This special scheme shall not apply to travel agents where they act solely as intermediaries and to whom point (c) of the first paragraph of Article 79 applies for the purposes of calculating the taxable amount.

2. For the purposes of this Chapter, tour operators shall be regarded as travel agents.

Article 307

Transactions made, in accordance with the conditions laid down in Article 306, by the travel agent in respect of a journey shall be regarded as a single service supplied by the travel agent to the traveller.

The single service shall be taxable in the Member State in which the travel agent has established his business or has a fixed establishment from which the travel agent has carried out the supply of services.

Article 308

The taxable amount and the price exclusive of VAT, within the meaning of point (8) of Article 226, in respect of the single service provided by the travel agent shall be the travel agent's margin, that is to say, the difference between the total amount, exclusive of VAT, to be paid by the traveller and the actual cost to the travel agent of supplies of goods or services provided by other taxable persons, where those transactions are for the direct benefit of the traveller.

Article 309

If transactions entrusted by the travel agent to other taxable persons are performed by such persons outside the Community, the supply of services carried out by the travel agent shall be treated as an intermediary activity exempted pursuant to Article 153.

If the transactions are performed both inside and outside the Community, only that part of the travel agent's service relating to transactions outside the Community may be exempted.

Article 310

VAT charged to the travel agent by other taxable persons in respect of transactions which are referred to in Article 307 and which are for the direct benefit of the traveller shall not be deductible or refundable in any Member State.

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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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