ETOA Insight | Understanding VAT and Tourism in Europe, with Tom Jenkins
TOMS Overview
Watch Tom Jenkins introducing key principles of VAT (Value Added Tax) and its impact on tourism in Europe. In this insightful session, he explains how VAT applies to services like hotels, restaurants, and attractions, and discusses the Tour Operators’ Margin Scheme (TOMS), which simplifies tax rules for tour operators. The overview also highlights the challenges faced by non-EU tourism businesses and the potential impact of upcoming EU tax reforms.
TOMS Consequences
In this second video, Tom Jenkins explores the practical impact of VAT and the Tour Operators’ Margin Scheme (TOMS) on global tourism businesses. He explains how EU-based tour operators often become less competitive than non-EU operators when selling European travel products, due to VAT being charged on their margins. The video also highlights the rise of wholesalers, online booking challenges, and the European Commission’s ongoing efforts to reform TOMS; changes that could have major financial consequences for long-haul tour operators worldwide.