travel agent vat rate

How to manage the VAT of a travel and/or event agency?

January 31, 2024

minutes of reading

How do you know whether your activity is tax-exempt or taxable? Which system should you apply and to what amount?

In the tourism sector, travel agencies are subject to a specific regime known as the profit margin. The subject has been the subject of much ink and sweat over the past 40 years, and may seem frightening at first glance...‍‍

Don't panic! Ezus shares its summaries to give you a better understanding of the subject, which we then used to integrate into our travel production and management software for receptives, tour operators and organizers at all levels.

I. Summary of the VAT topic 🔦

All operators offering travel services are legally referred to as "travel agencies", since the application of the specific tax regime depends on the nature of the service provided, and not on the quality of the service provider 🤔.

These tour operators cannot deduct the value-added tax (VAT) that appears on invoices issued by transport contractors, hoteliers, restaurateurs, entertainment contractors and other service providers supplying the final service to the B2B or B2C customer.

However, it is possible to be exempted from value-added taxes in certain circumstances.

VAT exemption conditions :

• If the company is based outside the European Union
• If the company is based within the European Union, and sells services outside the EU or overseas, or services that have not been performed (cancellations, no-shows, modification fees, insurance).

How the 2 VAT systems work for EU services :

Let's take a look at the two VAT systems applicable to services provided within the European Union. First, the common system.

1. COMMON PLAN ( transparent)

This regime applies in several cases, namely if the :

• does not sell transport or accommodation ;
• or directly operates its own vehicles, accommodation, restaurants (see list*).

VAT on purchases, such as that applied to expenses like catering or room hire, is generally recoverable. However, in France, it is generally not recoverable when associated with transport, hotels and car rentals.

In addition, the single service provided by a travel agency is taxable at the standard rate. Other activities carried out by travel agencies and tour operators are subject to their own rates, which may be reduced (rental of tickets for shows, sale of guides, provision of transport, accommodation, etc.). ‍

The sales invoice must display the current VAT rate, to guarantee total transparency.‍

2. SPECIFIC PLAN  (or profit margin)

This scheme only applies to travel packages: you must sell a minimum of accommodation and/or transport in order to qualify.

In this case, only the VAT incurred on the agency's overheads (such as electricity or advertising costs, for example) is recoverable.

VAT on expenses directly related to the trip is unfortunately not recoverable. The VAT payable is calculated on the basis of the all-inclusive margin. The rate applied to this margin depends on the different general VAT rates applicable in the country. For example, the French VAT rate is 20%.

VAT on sales is not (necessarily) displayed.‍

However, a third scenario exists, in which neither of the two regimes applies...‍‍

3. VAT NOT APPLICABLE

The value-added tax regime is not applicable in two cases only, namely if: ‍

• It's air.
• The services are rendered to customers using means of operation owned or leased by the agency (such as the provision of accommodation or passenger transport, sales for consumption on the premises, the rental of camping sites, when the travel agent directly operates the vehicles, hotel establishments, restaurants or grounds)

Note that the 3 scenarios can apply simultaneously on the same file depending on the services. There may even be exempt expenses as well 😰.

II. Calculate VAT margin📊

To calculate the VAT on margin to be paid, here are the main formulas to know:

• Gross Margin = Total Sales Price incl. VAT - Total Purchase Price incl. VAT
• VAT on Margin = Gross Margin * (1-(1/(1+VAT Rate)))
• Net Margin = Gross Margin - VAT on Margin

III. Good to know about VAT for your travel agency🌟

1. #reduced-rates.

1. In France, certain sectors benefit from a reduced VAT rate of 10%, such as rail, air and hotel.

2. Partners' commissions are not taxable, and are therefore added to the travel operator's net margin.

3. VAT on margins invoiced by one travel agency to another is not deductible.

2. #billing

1. In BtoB, agencies are obliged to issue an invoice. In BtoC, a note containing the agency's contact details, those of the customer, the amount including VAT and details of the trip is sufficient.

2. Travel agencies are not obliged to show the amount of VAT on their invoice (so as not to show their margin).

3. Not being obliged to show VAT, the agency may:

• For a French customer, indicate the VAT (on margin) so that the customer can reclaim the VAT.
• For a foreign European ‍customer, make a duty-free invoice (HT) so that the latter pays HT only. It's up to the French agency to register this invoice with the foreign customer's intra-Community VAT number on the tax site. The foreign customer is liable for VAT in his own country. Alternatively, the agency can issue an invoice exclusive of tax + VAT, with the foreign customer paying the VAT.
• For customers outside the European Union, issue an invoice inclusive of VAT. In this case, there is no VAT recovery on French services (territoriality of services consumed in France).

Of course, if the French agency carries out its services outside France, then invoices without VAT = VAT included, as they are not subject to VAT on the margin. It's up to the French agency to pay VAT in France if it buys HT from its European suppliers...‍

4. The words "Régime particulier - Agence voyages" must appear on every invoice in a french exercise. ( CGI, annexe II, art. 242 nonies A, 12° ) (15€ fine/bill if omission).

3. #accounting

1. According to the European Court of Justice, VAT on margins must be calculated on a case-by-case basis, whereas French law allows a choice between piecemeal and monthly calculations.

2. Travel agents who simultaneously carry out operations that fall under the specific travel agency regime and operations that do not fall under this regime must constitute separate sectors under the conditions defined by the article 209 of the annexe II of CGI .

3. Tours and cruises carried out in France or the EU are taxable in proportion to the expenses incurred.

Thus : Taxable amount = price of stay x (number of days spent in France and an EU country / total length of stay).

4. Transport services are taxable only for the part of the journey made in France, in the case of rail and road transport. (For example, for a flight outside the EU, the part of the flight between two cities in mainland France is not subject to VAT).

Thus: Taxable amount = price of ticket x (number of kilometers traveled in France / total number of kilometers).

Note that for Corsica, the "mainland-island" segment is exempt from VAT.

IV. Problems with the VAT margin system 🆘

Although many things have changed since 1977 and the introduction of this tax system, it continues to exist, while paradigm shifts have multiplied over the decades (cf. globalization, the Internet, changes in the agent profession...). Travel industry players are still wondering:

Why does my agency margin decrease when selling stays in the EU?

Do receptive operators pay VAT twice?

Can a TO reclaim VAT?

Is it in my interest to have an events business with my agency?

Tour operators cannot deduct VAT on the services they pay for from the cost price of their holiday or trip. In return, he charges VAT only on his margin and not on his total sales price.

Incoming agencies follow the same rules, and many French DMCs deplore having to pay VAT on both sales and purchases.

In short, this system has its limitations because :

• The scheme increases the price of BtoB services by the amount of VAT applicable, and encourages customers to deal directly with hotel or transport service providers in order to retain the benefit of input VAT deduction.
• Its complexity leads to management problems (one of our agency clients overpaid €250,000 in VAT over 5 years), and even prompts some companies to spin off the activities concerned to avoid extending the application of the derogatory system to all the services making up the package sold to customers (e.g. registration for a congress combined with an overnight hotel stay).

V. Influence on the event industry 🥶

This derogation penalizes not only travel agencies, but also event agencies and PCOs (professional congress organizers) providing single services to taxable customers, depriving them of the right to deduct input VAT.

This derogation penalizes BtoB specialists all the more: taxation applies not only to transport and accommodation operations, but also to all operations provided simultaneously.

As a reminder, VAT deduction in the MICE sector is more flexible, particularly for seminars, meetings or events organized by a French events agency in France:‍

• Organized by yourself : optimized deductibility
• Organized by a travel agency: VAT deductible only on the agency's margin , if indicated on the invoice.
• Organized by an agency under a mandate contract: optimized deductibility .

In addition, expenses for catering, room hire, team-building and overnight stays for external or technical staff are exempt.

VI. Definitions 💁

Provision of services : commercial operation carried out by a travel agency as an intermediary. This means that the service transaction is in the name of the agency, while using goods and services from suppliers (subject to VAT) who are external to it.

Calculation of the tax base : under the specific travel agency regime, the agency's tax-free margin is equal to the difference between the total amount paid by the traveler (revenue) and the cost of purchasing the services borne by the agency (expenses). The VAT rate is calculated on this amount, in contrast to the ordinary law system, where VAT is applied to the selling price to be invoiced to customers.

VAT margin system: applies to the margin made by the travel operator. It applies to the production and distribution of a holiday/tour to the final consumer, whether an individual or a company.

Expenses include the net amount, after deduction of rebates and discounts granted, of sums invoiced to the tour operator by the various service providers who carry out the services rendered to customers (including: reseller commissions, reimbursements and the cost price of information and consultancy services).

🚨 Taxation changes every day... If in doubt, the advice of a tax expert or accountant always prevails!

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Thanks to our software solution , you can halve your document creation times and have all your personalized documents and travel management in one place. Find out how during a demo .

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• Le B.A-BA de la TVA  par L'Echo Touristique.
• TVA - Régimes sectoriels - Agences de voyages et organisation de circuits touristiques , article écrit par le Gouvernement Français.
• Guide en ligne pour tout savoir sur la TVA , par Tourmag.
• Pour une liberté de choix entre le régime de la TVA sur la marge et le régime de droit commun par l'UNIMEV.
• Chaîne Youtube sur La TVA de l'agence de Voyage .
• Comment optimiser la récupération de TVA dans l’évènementiel / MICE? , article de Ideal Meetings.

* List of examples: provision of transport, accommodation, sales for consumption on the premises, rental of camping sites, when the travel agent directly operates the vehicles, hotels, restaurants or sites. The same applies to the rental or subletting of tents, caravans, mobile homes or means of transport (motor vehicles, boats) owned or leased by the travel agent.) Also excluded from the special scheme are: the rental of show tickets, foreign exchange transactions, the sale of guides or photographs, and the placement of insurance or assistance contracts.

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The Tour Operators Margin Scheme (TOMS)

Posted on: October 19th 2012 · read

What is the TOMS?

The TOMS is a compulsory VAT accounting simplification measure for any supplier who buys in and resells certain (designated) travel services, as a principal or undisclosed agent, without material alteration. It applies to sales to consumers only and not wholesale B2B sales. Designated travel services are accommodation, passenger transport, trips or excursions, hire of a means of transport and the use of airport lounges or tour guides.

It can apply to the sale of a single designated travel service as well as a package. Some other types of supply, theatre/attraction/sports event tickets and catering will be in the TOMS if these are sold with a designated travel service. It also applies to any business or organisation selling designated travel services and not just tour operators and travel agents.

VAT is payable where the supplier is established (so a UK supplier will account for UK VAT) rather than where the service is consumed. Otherwise, under the normal EU VAT rules, suppliers could have a liability to register and account for VAT in each EU member state where any travel service is consumed.

VAT is due on the Margin (the difference between the selling price and the cost of the relevant travel service). Standard rated VAT is due on services consumed in the EU and zero rated VAT applies to services consumed outside the EU. Suppliers established outside the EU will not be liable to pay any EU VAT even if the customer is in the EU and the service is consumed in the EU (although this is subject to ongoing review by the EU Commission).

The TOMS VAT liability is calculated on an annual financial year basis but suppliers are required to pay an estimated (provisional) amount of anticipated VAT during the financial year itself.

A concession applies to supplier’s sales of designated travel services which are, or are anticipated to be less than 1% of the total business turnover in the year. However, this does not apply if the sales are of accommodation or passenger transport.

VAT invoices must be issued for supplies (liable to the TOMS) to business customers (i.e. for business travel). However, instead of recording the amount of VAT due, the supplier must state that “the supplies are subject to the Tour Operators Margin Scheme” or words to that effect. As a result, business customers will not be able to recover any VAT included in the price.

What is not in the TOMS?

As noted above, the TOMS is not applicable to wholesale sales (B2B for onward supply by the buyer). Instead any VAT is due under the normal EU VAT place of supply rules and the supplier could be liable to register and account for VAT elsewhere in the EU (if the service is deemed to be subject to VAT in another EU Member State).

In addition, the services of a wholly disclosed agent, who is selling on behalf of another named travel service supplier, will not be liable to the TOMS. The supply by the travel service supplier may be. However, the agent’s services will be liable to VAT under the normal VAT rules, including any booking admin and credit/debit card fees charged to the consumer, as well as commission charged/due from the supplier.

Supplies from own assets or where there is a material alteration are also not liable to VAT under the TOMS. These are called in-house supplies. This includes supplies of hotel accommodation by hotel owners and supplies of flights by an airline, as well as conferences or events created by the organiser. Material alteration can include where a tour operator charters an aircraft for a season, or leases a hotel, and then contracts with a separate supplier for catering, crew or staff etc. These will then become supplies of passenger transport or hotel accommodation. As with wholesale supplies, any VAT is due under the normal EU VAT place of supply rules and the supplier could be liable to register and account for VAT elsewhere in the EU (if the service is deemed to be subject to VAT in another EU Member State). Where the supply is treated as taking place in the UK, VAT may be due at either the standard rate (i.e. hotel accommodation) or the zero rate (passenger transport).

Where a supplier sells a single price package made up of both a TOMS and an in-house supply, special rules apply to the TOMS calculation. The value used to calculate the proportion of the price for the in-house part or parts (where any VAT is then due under the normal rules) is the Open Market Value based on what the price would be if that part was sold on its own. If it would not be sold on its own then a value can be calculated through the cost apportionment process applied by the standard TOMS calculation method.

Mitigating any UK VAT payable under TOMS

The standard TOMS calculation method is the Global method where both EU and non-EU sales and costs are recorded through a single calculation. Where the actual margin on the EU sales is greater than on non-EU sales, part of the EU margin will be treated as non-EU part when calculating the VAT due. Where it is the other way around, then a split calculation method can limit any VAT payable on the EU margin only. 

Under the TOMS, the margin on any EU passenger transport element will be subject to standard rated UK VAT. However, there are three ways of structuring the sales so that UK zero rating can apply. The most commonly used is the Transport Company Option (using a subsidiary to buy in and wholesale the passenger transport to the tour operator). However, there are two others, the Agency Option (being a disclosed agent) and the Charter Option (creating an in-house supply by chartering an aircraft/leasing a coach and contracting separately for staff/maintenance/catering etc).

Lastly, as noted above, if a supply of travel services otherwise liable to TOMS in the EU is made by a supplier established outside of the EU, this will be taxed by reference to where the supplier is established. Therefore, unless the country of establishment outside the EU requires VAT to be paid on supplies in the EU the sales will not be subject to VAT.

Click here to get in touch with the team for advice and to discuss how this might apply to your business.

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VAT and the Travel Industry – UK and wider developments

With travel picking up again following the pandemic, now is a good time to think about how the vat world has changed, what this means for your business and the further changes that may be coming down the line., uk vat tour operators margin scheme – zero rating extended, eu toms (croatia and germany), eu toms review, eu and agency services – one stop shop vat accounting, eu vat rules for platforms/intermediaries, uk vat compliance – including making tax digital (mtd), retail export scheme, tax legislation, company strike-offs are not always voluntary, why the s in esg, russia-ukraine conflict: will markets take the strain from ukraine, megatrends: the bumpy path to net zero, request a call back, book an appointment.

HMRC VAT flat rate scheme and the travel industry history and criteria

• Using your device
• Introduced in the 2002 budget and is governed by provisions in the VAT Regulations 1995
• Self-assessed tax
• This allows self-employed agents and small businesses to collect and pay a single flat rate of VAT over their gross annual turnover and makes accounting simpler
• No corresponding reclaim of input VAT
• Self-employed agents and small businesses only have to account for 10.5% VAT, which is based on the commissions earned. This means that they can retain the remaining 9.5% to cover their business costs (including office equipment)

To benefit from the flat rate scheme, you must fulfil the following criteria:

• be a self-employed agent or a small business
• be VAT registered
• not required to use TOMS
• have a maximum taxable turnover of £150,000 per annum (excluding VAT) in the next 12 months
• not operate closely in ‘association’ with another business (which was the subject of the Travel Counsellors scenario, discussed below).

You cannot join the scheme if any of the following apply:

• you are not registered for VAT
• you use the second-hand margin scheme or the auctioneers’ scheme
• you are required to use the TOMS
• you are required to operate the capital goods scheme for certain capital items (see paragraph 15.6)
• you have stopped using the flat rate scheme in the 12 months before the date of your new application
• accepted a compound penalty offer or;
• been convicted of an offence in connection with VAT or been assessed with a penalty for conduct involving dishonesty
• you are, or within the past 24 months have been, registered for VAT in the name of either a VAT group (see paragraph 3.7) or division
• you are, or within the past 24 months have been, eligible to join an existing VAT group treatment (see paragraph 3.7)
• your business is ‘associated’ with another one in the special way explained in paragraph 3.8

New VAT scheme as of 1 April 2017

• announced in the autumn statement of 23 November 2016
• HMRC website: change will ‘prevent abuse’ and make scheme fairer
• VAT flat rate of 16.5% will apply from 1 April 2017 for businesses with limited costs
• In the first year of VAT registration you get a 1% reduction in flat rate percentage

As of 1 April 2017, self-employed agents and small businesses also need to determine that they meet the definition of a ‘limited cost trader’ which will be included in the supporting legislation.

What are limited costs traders?

The Government’s note, titled ‘ Tackling aggressive abuse of the VAT Flat Rate Scheme’ explains that a ‘limited cost trader’ will be defined as:

‘One whose VAT inclusive expenditure on goods is either:

• less than 2% of their VAT inclusive turnover in a prescribed accounting period; [or] our emphasis
• greater than 2% of their VAT inclusive turnover but less than £1,000 per annum if the prescribed accounting period is one year (if it is not one year, the figure is the relevant proportion of £1,000).’

The goods must be used exclusively for the purpose of the business, with the exclusion of the following:

• capital expenditure;
• food or drink for consumption by the flat rate business or its employees; and
• vehicles, vehicle parts and fuel (except where the business is one that carries out transport services – e.g. a taxi business – and uses its own or a leased vehicle to carry out those services).

The emphasis is on ‘goods’ which will affect any businesses that incur VAT on services such as rent or any other service which is seen as intangible in VAT terms.

Transitional provisions: If any current eligible businesses issue an invoice between 23 November 2016 and 31 March 2017 for a service to be performed on or after 1 April 2017 and for which they receive payment for, the supplies of those services shall – to the extent covered by the invoice or payment, be treated as if they are taking place on 1 April 2017 for the purposes of ascertaining the business’ relevant turnover. This is of importance to the travel industry for holidays booked before 1 April 2017, but commencing after the same – see section 8.2 of VAT Notice 733. Also see section 9.7.

Tackling aggressive abuse of the VAT flat rate scheme – technical note

Businesses using the scheme, or thinking of joining the scheme, will need to decide whether they are a limited cost trader. For some businesses – for example, those who purchase no goods, or who make significant purchases of goods – this will be obvious. Other businesses will need to complete a simple test, using information they already hold, to work out whether they should use the new 16.5% rate.

Goods must be used exclusively for the purpose of the business – this means you must not include the cost of any goods that are used in full or in part for your own private use. For example, printer ink and stationery that are used for both your office and your home would not be included. It would also exclude goods acquired with the intention of giving them away or donating them to a third party.

Capital expenditure – is the cost of any goods which are bought to be used in the business over a period of time (for example, longer than a year). Examples include equipment such as a compute, mobile phone, office furniture a tablet or a printer, even if they are not necessarily treated as capital assets for accounting purposes. The legislation that describes capital expenditure goods can be found in VAT Regulations 1195, 55A (1).

Operational issues

Agents can self-assess for limited cost status, but may be found to be ineligible if they do not meet the requirements set out above.

Businesses who are trading under the current VAT threshold may want to consider de-registering from VAT from 1 April 2017. Those who trade over this threshold may face having to withdraw from the VAT flat rate scheme on the grounds of ineligibility.

Turnover forecasting lower must have been reasonable.

“In ‘association’ with another business”

Paragraph 3.8 of VAT Notice 733

You are associated with another business in this special sense if:

• one business is under the dominant influence of another
• two businesses are closely bound by financial, economic and organisational links or another company has the right to give directions to you
• in practice your company habitually complies with the directions of another. The test here is a test of the commercial reality rather than the legal form

Will this result in review of agency arrangements (Hotels4U and Secrets Hotels)? Although HRMC will look at the documentation as a starting point for the assessment, it will nevertheless look behind the franchise contract at the commercial reality of the relationship.

Will this result in immobility of small businesses and agencies? If your business has been associated in this way with another in the last two years, but is not associated at the time you apply, HMRC can let you use the scheme if they agree in writing that your former association is not a risk to the revenue.

Is this likely to result in more people wanting to have a change in employment status? HMRC website: ‘This will reduce the incentive for firms and agencies to move employees to self-employment to exploit VAT simplification aimed at small businesses’.

HMRC’s recent interest in the self-employed i.e. Uber, Hermes etc. Conclusion:

• Read VAT Notice 733
• Penalty playground
• Assess both eligibility on financial grounds and contractual/factual position – but remember that complying with the directions of another company could be an expensive habit.

Turnover VAT Notice 733 If your forecast turns out to be too low, you will not be penalised provided that there were reasonable grounds for what you forecast. So it is sensible to keep a record of the figures you used to calculate your future turnover.

If your forecast has no reasonable basis, HMRC may exclude you from the scheme immediately, or from the date your ineligibility use began.

3.5 What if my turnover rises once I have joined the scheme? You will cease to be eligible to use the scheme if the total value of your income for the year ending is more that £230,000.

However, if HMRC are satisfied that the total value of your income in the next 12 months will not exceed £191,500, you may be eligible to remain in the scheme.

The figures above include VAT inclusive income of all taxable and exempt supplies.

There are three ways of calculating your turnover. They are:

• Basic turnover – this is principally for those who deal mainly with VAT-registered businesses. If you are used to account for VAT on an invoice basis, this can be the simplest to operate. For details see Section 8.
• Cash-based turnover – this method is the Flat Rate Scheme equivalent of cash accounting. It is based, not on the time you make the supply, but on the time you are paid for your goods or services. This can be helpful if you give extended credit or your customers pay you late. For details see Section 9.
• Retailers’ turnover – this is essentially the same as a retail scheme and is best if you are a retailer selling goods to the public. For details see Section 10.

7.11 Can penalties apply to Flat Rate Scheme users? Yes. Surcharge is applied in the normal way if you send your return in late or pay any VAT due after the due date. For details see VAT Notice 700/50 Default Surcharge .

Businesses with a turnover up to £150,000 are issued with a letter offering help and advice on how to avoid late returns and payments for the first time they pay late. If you make errors on your VAT return, then you may be liable to a misdeclaration penalty as well as being assessed for any VAT and default interest. See VAT Notice 700/42 Misdeclaration penalty and repeated misdeclaration penalty and VAT Notice 700/43 Default Interest .

Case with Travel Counsellors HMRC has previously questioned whether the franchises of Travel Counsellors were truly independent. In June 2016, HMRC sent letters to homeworkers who were using the VAT flat rate scheme stating that they had been assessed as being ineligible. HMRC’s position was that because Travel Counsellors (the parent company) exerted a ‘dominant influence’ over its agents, those agents should not have been using the scheme as they fell within the exception.

At this stage, agents were facing having to repay up to four years’ backdated tax. However, as a result of ongoing negotiations involving HMRC, Travel Counsellors and the agents in December 2016, HMRC decided not to pursue this matter any further.

Information on home workers (Travel Counsellors etc.) For the last 20 years, Travel Counsellors has provided a home worker scheme providing administrative (booking systems), financial (including card payment facilities), marketing, PR, IT and business development support to self-employed agents/small businesses. The scheme provides 24-hour support. In effect, this allows smaller ‘players’ in the travel industry to run and control their own business.

To become a home worker for Travel Counsellors, self-employed agents/small businesses are charged an initial start-up fee and are provided with training and equipment (laptop/computer, printer and webcam). They are then charged monthly business costs, which can be broken down as:

• Line rental - £20.00 + VAT + call charges
• Personal indemnity insurance - £7.00
• A monthly administration fee - £40.00 + VAT

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Sousse coroner concerned tourists receive insufficient information about the risk of terrorist attacks

13 July 2017

The coroner in the case of 30 British holidaymakers killed in the Sousse beach terrorist attack in 2015 has raised concerns that travel companies are not doing enough to inform travellers about the risks of terrorist attacks in destination countries. The coroner has issued a Regulation 28 report to (1) the Secretary of State for Transport; (2) the Secretary of State for Foreign and Commonwealth Affairs; (3) the chief executive of ABTA; and (4) the chair of the Civil Aviation Authority to raise two points of action which should be taken in order to prevent future deaths. These are as follows:

Fight fake claims: cap to fees for claims firms announced in Queen’s Speech

23 June 2017

Practitioners in the travel sector have been encouraged by the Government’s recent commitment to tightening the regulation of claims management companies, who offer support to consumers in making a claim for compensation. In the Queen’s Speech of 21 June 2017, the Government announced that claims management companies’ fees would be capped and responsibility for regulation of such companies would be transferred to the Financial Conduct Authority. Complaints-handling responsibilities would also be transferred to the Financial Ombudsman Service.

HMRC VAT flat rate scheme and the travel industry

05 April 2017

It is well known that the current rate of VAT in the UK is 20%. Self-employed agents and small businesses in the travel industry previously benefitted from the VAT flat rate scheme. This meant that they only had to account for 10.5% VAT, based on commissions earned, with the remaining 9.5% being retained to cover business costs. However, on 1 April 2017 revisions to the VAT flat rate scheme came into effect.

UK and US laptop ban disrupts the travel industry and its customers

28 March 2017

The UK laptop ban came into force on Sunday 26 March 2017 amid continued questions raised by aviation security experts about the viability of the ban as well as concerns amongst passengers about placing their valuables into the hold.

New passenger guidance for disrupted flights

20 March 2017

The European Commission has released new information for passengers in relation to claims agencies that purport to handle claims for disrupted flights. The concept of a claims agency in this context also includes law firms and lawyers acting within this remit. This guidance follows a series of allegations of claims agency malpractice being brought to the Commission’s attention.

Please note: Our website no longer fully supports IE11 , as such you may encounter issues using our website, please try an alternative browser such as Google Chrome, Mozilla Firefox, Microsoft Edge (Windows) or Safari (Mac).

VAT guidance note on use of the TOMS Transport Company Scheme for reduced rate of VAT for domestic travel

This is an updated version of the Guidance Note of August 2020 on the VAT treatment by tour operators of services eligible for the 5% reduced VAT rate. In particular, it reflects the new Tour Operators’ Margin Scheme (TOMS) arrangements introduced at the end of the Brexit transitional period. The first version contains information which might still be useful to Members, for example when performing the year end TOMS annual adjustment for the year straddling the end of the transitional period, and the original version can be seen here .

Members will be aware that last year the government announced a 5% reduced rate of VAT on certain services to assist UK tourism and hospitality and to help protect jobs in these sectors. This rate will apply until 30 September 2021 and a transitional rate of 12.5% will then apply for the period to 31 March 2022.

Unfortunately, the rules of TOMS require the margin made on services enjoyed anywhere in the UK (anywhere in the EU until the end of 2020) to be subjected to the 20% standard rate. Accordingly, Members providing any of the reduced rate services in circumstances in which they are required to use TOMS would not benefit from the reduced rate as they would still be required to pay VAT at 20%.  

ABTA approached the government last summer on behalf of Members to seek an agreement on how this unwelcome outcome might be avoided and HMRC agreed to such an arrangement. Members are therefore able to take steps to ensure that the effective rate of VAT they pay on the affected services is 5%.  

Last year’s agreement involved the extension of the transport mitigation arrangements to the reduced rate services. We later discussed with HMRC an alternative (simpler) approach to use a margin apportionment method (see below) to achieve the same objective. HMRC initially agreed this alternative in principal but there is no official confirmation of the acceptability of this yet. Therefore, this Note looks primarily at the extended transport company arrangements.  

As the new post-Brexit TOMS only taxes the margin on UK services, Members which do not sell UK holidays and other services enjoyed in the UK are not affected by this measure.

The purpose of this note is to set out the operation and benefits of the agreed approach.

Members wishing to adopt these arrangements are invited to speak to the ABTA VAT helpline (operated by Elman Wall Bennett, 07795 684958 or [email protected] ).

The nature of the arrangements

Many Members use the passenger transport mitigation arrangements which ABTA agreed with HM Customs & Excise (the then equivalent of HMRC) in the mid 1990’s. HMRC have agreed that these arrangements can now also be used to ensure that the benefit of the 5% rate is available to those within TOMS.

Two mitigation schemes agreed in the 1990’s are still in use: the transport company scheme and the agency scheme. We believe that the transport company scheme is by far the more widely used and it is anticipated that most Members wishing to adopt this new mitigation will opt to do so by use of the extended transport company arrangements and therefore this Note concentrates on these arrangements but any Member wishing to adopt the agency arrangements is free to do so.

The official guidance on the operation of the two schemes as adopted in 1996 is available in these two documents both of which are available here:

• Tour Operators’ Margin Scheme: Practical implementation of the trader to trader (wholesale) option following the changes which came into effect on 1 January 1996  
• Tour Operators’ Margin Scheme: Practical implementation of the agency option

Whichever approach is adopted, the purpose is to ensure that the VAT due is the same as would be due if the TOMS margin made on the affected UK services could be taxed at 5%.

The reduced rate only applies to certain services (see below) provided in the UK. The effect is that services provided by a tour operator and enjoyed in the UK can in effect be taxed at 5% whilst the same services enjoyed in the EU until the end of the transitional period continued to attract the 20% standard rate. Under the new post-Brexit UK TOMS, the margin made on services enjoyed anywhere outside the UK is zero rated but it is important to note that the margin made on EU holidays etc supplied in 2020 is standard rated and the arrangements described in this Note should not be used to reduce the VAT due on EU destinations in 2020.

This Note concentrates on the treatment of the reduced rate services supplied after the end of the transitional period. We appreciate though that many Members still need to complete a year end annual TOMS calculation for a year straddling the end of the transition and the guidance contained in the earlier Note remains relevant, so that earlier Note is still available here .

Depending on the circumstances, these new arrangements can be quite complex. Members will need to consider whether the use of these arrangements is warranted in their circumstances.

Margin apportionment

Given the complexity of the arrangements described in this Note, ABTA approached HMRC to see if they would be willing to re-introduce the margin apportionment arrangements which existed before 1996 1 . HMRC told us that they were willing to do this but have not followed that up with a change to the law (or otherwise granted permission for this approach). We continue to follow-up with HMRC on this possibility and will let Members know as soon as anything is agreed.

Briefly, if agreed, a margin apportionment would allow the margin made on UK travel to be split between services taxed at the 0%, 5% and 20% rates so that tour operators and others using TOMS would be able to apply the same VAT rates as those outside the scheme.

However, we cannot suggest that anyone adopts this approach at this stage as there is no provision for it within the new TOMS legislation.

What services are taxable at 5%?

With effect from 15 July 2020, the 5% rate applies to:

• accommodation: sleeping accommodation provided in a hotel or similar establishment, holiday home accommodation, pitch fees for caravans and tents and supplies of associated facilities.  
• hospitality: hot and cold food and hot and cold non-alcoholic beverages sold for on-premises consumption – for example, in restaurants, cafés, and pubs – and hot takeaway food and hot non-alcoholic beverages 2  sold for consumption off the premises.  Alcoholic drinks of any kind are not included and 20% VAT remains payable.  
• attractions: admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar 3 .  Admission to sports events is not included and remains subject to 20% VAT.

All of these reduced rate services are eligible for inclusion in the mitigation arrangements.

An interim rate of 12.5% is due to apply to these services from 1 October 2021 and 20% to be reintroduced from 1 April 2022.

The transport company scheme

The arrangements for this scheme see a company separate to the tour operator (typically a subsidiary) contract to purchase passenger transport and re-sell it to the tour operator. The price charged by the transport company is calculated at the year end, at the same time as the TOMS calculation itself is done, and is set at the level required to ensure that the tour operator pays no VAT on the transport. In other words, the margin made on the sale of the transport is transferred to the transport company, where it is treated as zero rated, so that neither company pays any VAT. The profits made by the transport company are often transferred back to the tour operator via a management charge. Until the end of 2020, the arrangements could be used for passenger transport anywhere in the EU but should now only be used for UK transport.

As many Members already use the transport company scheme, this note assumes an existing understanding of the way in which the scheme works.  It also assumes a working knowledge of TOMS.

The same arrangements can now be used for UK services within the reduced rate, but with one main difference: the supplies made by the wholesale supplier (hereafter referred to as “the subsidiary”) are subject to VAT at 5%.

Examples of the calculation of VAT due using these extended arrangements are set out below.

Adoption of the scheme for reduced rated services

The subsidiary will be able to contract for the purchase of any of the UK reduced rate services and re-sell these services to the tour operator. The subsidiary will recover the 5% VAT charged by the suppliers and account for VAT at the same rate on supplies to the tour operator.

Broadly speaking, the arrangements of the existing scheme need to be extended to the reduced rate services. What this means for Members will vary from case to case, but points to consider include:

• Contracts for the purchase of services to be transacted via the subsidiary need to be in the name of the subsidiary.  Existing contracts can be assigned to the subsidiary (with the agreement of the supplier). Alternatively, new contracts can be agreed in the name of the subsidiary.  
• The subsidiary will need to instruct the affected suppliers that invoices must be addressed to the subsidiary.  
• The Member should consider whether to implement a contract between the subsidiary and the tour operator for the supply of the affected services.   
• The Member will also need to adopt invoicing arrangements for the services to be supplied to the tour operator.

Mixed rate costs

It is important that the scheme is used only for services rated at 5%. There are likely to be instances of a single cost being partly taxed at 5% and partly at 20%. An example could be a meal with wine. It can be expected that the restaurant would raise an invoice showing values for the 5% and 20% elements. Members adopting the arrangements described in this paper will need to make sure that they take this into account when calculating VAT due.

Cultural services

As above, admission to many attractions is now eligible for the reduced rate. However, certain cultural attractions have long been exempt from VAT. This exemption continues to apply and overrides the reduced rate.  Therefore, Members may well find that some attraction costs are subject to 5% VAT whilst others have no VAT. It will be important to distinguish between such costs in the use of the scheme. Where a subsidiary purchases an exempt admission and re-sells it to the tour operator, the 5% rate should be applied.

Unregistered suppliers

The UK registration threshold is £85,000 per annum. Therefore, many smaller suppliers may not charge VAT.  This is a common situation when purchasing accommodation from a B&B. The effect is much the same as that for exempt cultural services. In other words, there is no VAT on the cost but the subsidiary must account for 5% on its sale to the tour operator. Again, where relevant, Members will need to factor this into their calculations. 

VAT invoices

Members will need to obtain VAT invoices (addressed to the subsidiary) from UK reduced rate suppliers to support the subsidiary’s recovery of input VAT.

Illustrations

Set out below are two examples of the new approach in practice.  

The mark up required (in example 2) has been calculated by trial and error, which we believe is the approach adopted by most Members currently to identify the transport mark up. It is naturally more complicated, however, where different rates need to be considered. As a positive rate of VAT applies to the UK tourism and hospitality services, the subsidiary will create a net payment liability on its supplies of those services. It is necessary therefore to look at the aggregate VAT positions of the subsidiary and the tour operator.

Copies of a spreadsheet detailing the calculation for example 2 can be shared with Members.  

Points to bear in mind include:

• We have assumed that all reduced rate services purchased have attracted input VAT at 5%.  We have not built in any complications arising from the non-charging of VAT by suppliers.    
• The examples use accommodation as the reduced rate service but the same approach applies to the other reduced rated services described above.  
• The examples reflect only the 5% rate.  In many real-life situations, a financial year will include services taxed at both the 5% rate and the 12.5% interim rate and the calculation will need to reflect this.

Example 1: Sale of UK accommodation 

This first example looks at a Member selling solely accommodation enjoyed in the UK. This may not be a widespread situation but the calculation helps to illustrate the operation of these wholesale arrangements.

Standard TOMS calculation: 15,000 x 1/6th = 2,500. This is the VAT due where the margin is taxed at 20%. This is what would be paid if the new mitigation arrangements are not applied.

The aim of the mitigation is to achieve a payment of VAT equal to what would be paid if the margin was taxed at 5%. Therefore, the target VAT can be calculated as:

15,000 x 5/105 = 714.28.  This is the liability which should arise as a result of the scheme, representing a saving of 1,785.72.  

This can be achieved (in this straightforward scenario) by setting the transfer price from the subsidiary to the tour operator at the full value of the latter’s sales.  

The accommodation cost of 105,000 is now invoiced to the subsidiary which is able to recover the input VAT of 5,000.  The subsidiary sells the accommodation to the operator for 120,000. This includes of output VAT of 120,000 x 5/105 = 5,714.28.

The tour operator makes no margin so pays no VAT. The subsidiary declares input VAT and output VAT as:

The target VAT cost has been achieved, albeit it is now paid by the subsidiary and not the operator. 

Example 2: Sale of UK packages

This example considers the sale of holidays in the UK 4 . The figures below represent totals for a financial year in which the reduced rate applied throughout. Therefore, all accommodation attracted the 5% rate, the passenger transport was zero rated and the car hire was subject to 20%.

The standard TOMS approach treats the margin made as wholly subject to UK VAT at 20%. The margin includes the VAT due and therefore the VAT fraction is used to calculate the VAT. The VAT due is therefore 130,000 x 1/6 = 21,666.67.

The target VAT is achieved by apportioning the margin between the services taxed at the different rates 5 :

Accommodation margin = 130,000 x 630/870 = 94,138. VAT due = 94,138 x 5/105 = 4,482.76 Transport margin = 130,000 x 150/870 = 22,414. The transport is zero rated so no VAT due. Car hire margin = 130,000 x 90/870 = 13,448. VAT due = 13,448 x 1/6 = 2,241.33 Target VAT is 6,724.09, a saving of 14,942.58.  

The subsidiary will contract for the purchase of the transport and the accommodation and the tour operator can purchase the car hire direct from the supplier.  It is necessary to find the subsidiary’s selling price of both the accommodation and transport which achieves the target VAT. The VAT due is the aggregate of that payable by the tour operator (under TOMS) and by the subsidiary. The desired result can be achieved if the subsidiary sells the accommodation and the passenger transport ay a mark-up of 14.9425% 6 . 

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1  It was the forced withdrawal of the apportionment which led to the introduction of the transport company and transport agency schemes.  

2  Many cold items for takeaway have long been zero rated and remain zero rated now.

3  Subject to certain conditions, admission to cultural events and similar are exempt from VAT.  This exemption overrides the reduced rating and therefore admissions which were previously exempt remain exempt. The effect of this is considered above.

4  This example could illustrate a tour operator which sells only UK holidays or a tour operator selling holidays in the UK and elsewhere but which has elected (section 5.9 of HMRC Public Notice 709/5) to calculate its TOMS VAT on a UK-only basis.

5  VAT due would be calculated on this basis if HMRC agree to the simpler margin apportionment approach discussed below.

6  There is no requirement that the same mark-up is applied to both the accommodation and transport – all that matters is that the aggregate liabilities of the two companies is equal to the target VAT.  A spreadsheet calculation can be provided to illustrate the calculation of this mark-up.  Members may also like to discuss it with the VAT Helpline.

Travel Industry VAT

We have a significant amount of experience in advising a wide range of businesses in the travel sector, including major tour operators, high street travel agents, business travel agents, and online travel businesses. We can help you with a wide range of Travel Industry VAT issues, including:

• VAT efficient structuring (use of purchasing hubs, wholesale structures)
• Implementing transport company arrangements
• Advice on agent versus principal status
• VAT liability of transaction fees and commissions
• VAT refunds on travel agent funded discounts
• TOMS calculations
• In-house supplies
• VAT liability of credit card charges/booking fees
• Exempt revenue streams (eg sale of travel insurance, forex)

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T ravel industry VAT rules are complex, and the rules differ depending on the capacity in which the business is acting. It is now commonplace for several different revenue streams to be earned from a single customer transaction as businesses seek to replace commission income – this increases the Travel Industry VAT complexity.

The tour operator’s margin scheme (TOMS) is an EU VAT simplification measure originally aimed at traditional tour operators selling package holidays to travellers and preventsthe business from having to register for VAT in numerous EU jurisdictions overseas. The downside however is that VAT has to be accounted for on the entire margin (including the flight proportion) for EU trips; this margin VAT cannot be recovered by customers, even if they in business.

Travel businesses that have historically acted as disclosed agents for VAT purposes and have thus been able to zero rate the fees or commissions they earn on flight sales, can inadvertently fall into the TOMS net if they apply undisclosed mark-ups to their sales of flights. There are a number of Travel Industry  VAT mitigation arrangements that can be put in place to prevent the business from having to account for VAT on the sale of flights, but these can often only be put in place prospectively and so do not prevent historic liabilities from arising in this area.

Until January 2010 travel businesses based in the UK were afforded a degree of flexibility in relation to their activities and TOMS, in that they were able to opt out of or into the regime. This was attractive for businesses in the corporate travel sector as they were able to opt out of TOMS and use the normal Travel Industry VAT rules instead, meaning their corporate clients could recover VAT on travel arrangements. The loss of the ‘opt out’ has increased the cost of business travel as TOMS VAT is sticking tax. 

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• Business tax
• Accounting for VAT

VAT: reduced rate for hospitality, holiday accommodation and attractions

If you’re a VAT registered business, check if you can temporarily reduce the rate of VAT on supplies relating to hospitality, accommodation, or admission to certain attractions.

As announced at Budget 2021, the temporary reduced rate which applied to tourism and hospitality ended on 31 March 2022.

From 1 April 2022 the normal VAT rules apply, and VAT should be charged at the standard rate.

For accounting purposes, the reduced rate had applied as follows:

5% from 15 July 2020 to 30 September 2021

12.5% from 1 October 2021 to 31 March 2022

The government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary reduced rate of VAT to certain supplies relating to:

• hospitality
• hotel and holiday accommodation
• admissions to certain attractions

The temporary reduced rate applied to supplies that were made between 15 July 2020 and 31 March 2022.

These changes were brought in as an urgent response to the coronavirus (COVID-19) pandemic to support businesses severely affected by forced closures and social distancing measures.

Hospitality

If you supply food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, café or pub, you’re currently required to charge VAT at the standard rate of 20%. However, when these supplies were made between 15 July 2020 and 31 March 2022 you only needed to charge the reduced rate of VAT.

You were also able to charge the reduced rate of VAT on your supplies of hot takeaway food and hot takeaway non-alcoholic drinks.

More information about how these changes apply to your business can be found in Catering, takeaway food (VAT Notice 709/1) .

Hotel and holiday accommodation

You also benefited from the temporary reduced rate if you:

• supplied sleeping accommodation in a hotel or similar establishment
• made certain supplies of holiday accommodation
• charged fees for caravan pitches and associated facilities
• charged fees for tent pitches or camping facilities

More information about how these changes apply to your business can be found in Hotels and holiday accommodation (VAT Notice 709/3) .

Admission to certain attractions

If you charge a fee for admission to certain attractions where the supplies are currently standard rated, you only needed to charge the reduced rate of VAT between 15 July 2020 and 31 March 2022.

However, if the fee you charge for admission was exempt that will take precedence and your supplies will not qualify for the reduced rate.

More information about how these changes apply to your business can be found in VAT on admission charges to attractions .

The Flat Rate Scheme

If you are a small business and use the Flat Rate Scheme to simplify your VAT calculations, you should be aware that certain percentages have been reduced in line with the introduction of the temporary reduced rate of VAT.

More information can be found in VAT Flat Rate Scheme .

The Tour Operators Margin Scheme

If you are a business that buys in and resells travel, accommodation and certain other services, and you act in your own name, you may operate the Tour Operators Margin Scheme to simplify your calculations.

Further information about how the introduction of the temporary reduced rate of VAT will affect your calculations can be found in Tour Operators Margin Scheme (VAT Notice 709/5) .

Accounting for supplies that straddle the temporary reduced rate

In most cases, you will simply account for VAT at:

• 5% for supplies made between 15 July 2020 and 30 September 2021
• 12.5% for supplies made between 1 October 2021 and 31 March 2022

However, there may be situations where you received payments or issued invoices before 15 July 2020 for supplies that took place on or after 15 July 2020.

More information about this can be found in sections 30.7.4 to 30.9.2 of VAT guide (VAT Notice 700) .

Retail schemes

Catering businesses using retail schemes may have to alter their accounting systems for the period 15 July 2020 to 31 March 2022.

If you have a bespoke retail scheme agreement, you should review it and if you think an alteration is needed, contact your large business Customer Compliance Manager, or if you are not a large business customer you should contact [email protected] .

Catering businesses operating the catering adaptation

If you have a turnover of between £1 million and £130 million and are using a catering adaptation method previously agreed with HMRC you may alter the scheme without prior agreement for the period providing the calculation gives a fair and reasonable result. You must then revert back to your previous scheme.

You should keep the records of how you altered the scheme as part of your business records.

Read section 7 in Notice 727 to find out more about catering adaptation .

Caterers using the direct calculation scheme

If all your sales are at the reduced rate then the reduced rate will apply to your daily gross takings during the period.

If you have mixed supplies and your till is not programmed to account for different rates then you may adopt the principles of the direct calculation scheme, if appropriate, to the standard rated goods. Otherwise you should make a fair and reasonable apportionment and retain your workings as part of your business records.

The temporary reduced rate of 5% that was applied to tourism and hospitality has been corrected to July 2020. The end of the temporary reduced rates has been corrected to 31 March 2022.

We have added information about government legislating to extend the temporary reduced rate of VAT.

Guidance has been updated to reflect the extension of the VAT reduced rate for tourism and hospitality from 12 January to 31 March 2021.

A new section about Retail Schemes has been added to the guide.

First published.

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Tá an chuid seo den suíomh idirlín ar fáil i mBéarla amháin i láthair na huaire.

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TRAVEL AGENTS (Agents)

Standard rate

Only travel agents acting in an intermediary capacity are liable at the Standard rate. Where travel agents act as principals please refer to information contained in the Guidance on Travel Agents Margin Scheme, further information of which is contained in the link below.

Value-Added Tax Consolidation Act 2010 (VATCA 2010) Ref

Section: 46(1)(a), 88(1)

Published: 04 August 2018 Please rate how useful this page was to you Print this page

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Tips For Independent Travel Agents On Tax Filing

T here are several tax filing considerations that you as an independent travel agency need to keep in mind. You are considered self-employed, which means you must handle your own taxes, which is one of the most crucial things to keep in mind since, in contrast to conventional workers, you are.

In order to maximize their tax savings and file their taxes, independent contractors like travel agents may run into problems. When selling hotel reservations, vacation packages, and other travel-related goods, many travel agents operate on a project-basis and make money. Because of the possibility of seasonal employment, revenue fluctuations may sometimes occur. The 1099 tax rate and form (and/or a  w2 template  if you find yourself working as an employee with any business), quarterly tax calculator, and self-employment tax calculator are thus essential tools that may assist you in making wise tax choices.

For independent travel agencies paying taxes, consider these suggestions:

1. Learn the tax regulations

In order to file taxes as an independent travel agency, you must first get familiar with the tax regulations that relate to your industry. Read the IRS publication on small enterprises and self-employed persons to learn how to record your income, deductions, and credits.

For independent travel brokers, it’s important to remember the following tax regulations:

-Unless you request an extension, you must submit your yearly tax return by April 15th and pay any taxes that are required.

– You are required to record all revenue you get from your travel agency, including 1099-style payments.

– Self-employment taxes, also known as Social Security and Medicare taxes, are due by self-employed people and now represent 15.3% of their net income. These taxes cover both the employer and employee components of Social Security and Medicare.

2. Recurring business costs should be monitored

Being a self-employed travel agent has several advantages, including the ability to deduct numerous company expenditures from taxable income, which may reduce your tax burden. You may write off certain costs, such as:

– Costs associated with running an office, such as rent, utilities, and supplies.

– Costs associated with traveling, such as lodging and rental vehicles.

– Marketing expenditures, including web hosting and advertising.

– The cost of your phone, camera, and computer equipment.

Maintaining precise records of all your company expenditures is crucial to ensure you don’t overlook any deductible costs. This is especially important because these agencies are exempt from some taxes, and you can  learn more about the tour operators margin scheme  if you live in Britain, for example. You may maintain a record of your expenditures in a spreadsheet or notepad, or you can use accounting software to manage your costs automatically.

3. Calculate the tax rate on your 1099 form

You get 1099 forms from your customers when you work as a self-employed travel agent, which implies that taxes are not deducted from your salary. Taxes on your income must be paid by you instead. Using a 1099 tax rate calculator is a fantastic idea to make sure you are allocating the right amount of money for taxes.

Based on your income and deductible costs, the calculator will help you establish your tax obligation. In order to assist you avoid underpayment penalties, it will also figure out the projected tax owed for each quarter.

4. Calculate the self-employment taxes

The self-employment taxes, which include Social Security and Medicare taxes, must be paid by self-employed people, as was previously noted. Use a self-employment tax calculator to get a rough idea of your taxes for being self-employed.

With the help of the tool, you can determine how much money you’ll need to put aside for self-employment taxes and an estimate of your tax liabilities depending on your net income. Remember that the self-employment tax rate is presently 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare.

5. Maintain your tax payments on time each quarter

Quarterly anticipated tax payments are necessary if you anticipate owing more than $1,000 in taxes for the whole year. Penalties and interest fees may be assessed if these payments are not made.

Using a quarterly tax calculator to calculate your estimated tax bill for each quarter is crucial to ensuring that you pay your taxes on time and avoiding underpayment penalties. When the time comes to submit your taxes, this will help you prevent any surprises.

For independent travel brokers, handling taxes may be a huge hassle. But you can reduce the stress and increase your tax savings by being informed with tax laws, keeping track of your company spending, utilizing a 1099 tax rate calculator, calculating self-employment taxes, finding tax deductions and staying on top of quarterly tax payments. You can make sure you are remaining in compliance and choosing wisely when it comes to taxes for your travel company by heeding the advice in this guide.

The post Tips For Independent Travel Agents On Tax Filing appeared first on Mom and More .

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Welcome to the Auditor-Controller's Office.

This page gives us an opportunity to provide financial information about your local government.

The Office of the Auditor-Controller’s primary mission is to ensure the fiscal integrity of the County’s financial records and to provide service, assistance and information to the Public, Board of Supervisors, County Administrator’s Office, County Departments and Employees, Special Districts and some regional non-county agencies. We are committed to providing exemplary professional service to all of our customers, while at all times treating them with fairness, integrity, respect and trust.

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