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Where Taxpayers and Advisers Meet

travel agents and place of supply

Nonimous
Posts:90
Joined:Thu Jul 16, 2009 12:39 pm
travel agents and place of supply

Postby Nonimous » Mon Nov 07, 2016 3:45 pm

New client has a business renting out holiday flats in Portugal. She doesn't own any of them, she's just a broker between people who have something to rent and people who want somewhere to stay. She doesn't let out anything else, all the rentals with which she is involved are in Portufal

Apparently her software advisors have told her that she need not charge VAT on her commissions, because none of the properties are in the UK.

I assume they think that the property owners will be VAT registered and so she can use the reverse charge? The only other thing I can think of is that she is an intermediary, BUT following that train of thought, that would mean she would have to e registered in Portugal.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: travel agents and place of supply

Postby les35 » Mon Nov 07, 2016 7:23 pm

She may be liable to register for VAT, and fall within the Tour Operator's Margin Scheme (TOMS). This is a complex area, so you should seek professional advice to review the contractual position, and the day to day operation of the business, to get the best advice.


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