Travel agent's margin scheme (TAMS)

The TAMS provides for the taxation of margin scheme services supplied by tour operators and travel agents acting as principals (travel agents).

Margin scheme services include services which are bought-in by a travel agent from third parties and sold by the travel agent as a package to a traveller, such as:

• transport
• accommodation
• tour guides.

In this scheme, unlike the normal Value-Added Tax (VAT) system, VAT is accounted for on the basis of the travel agent’s margin rather than the full consideration the travel agent receives for the supply.

Further guidance contains more detailed information on the VAT treatment of the travel agent's margin scheme (TAMS).