vat & travel agent

[Pradip Rajah]

Dear all

I hope someone can advice me on the following:

My wife has recently started a travel agent business. She undertakes the following:

-sell airline tickets
-organise tour booking

Could someone let me know the vat position please? does she have to charge vat on ticket sales and tour sales and she she get charged vat on ticket sales when she buys these from airlines or consolidators?

thanks

Prad

[RAL]

Travel agent and Tours are complicated and complex areas.

If you are acting as an agent, then you have to pay vat on the commission you receive. This commission areas is complex too.

I say airline is passenger supply so that should be zero rated, hence airline should not charge you the vat on ticket sales.

Tour Booking, you have to do case by case. It depends on the underlying supply and how tour operator is treating tours! Tour operator could be treating under TOMS, then you have to pay the vat on the commision you receive.

If you require help on this, feel free to PM me as I have experience of passenger transport and tours industry.