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 bought-in by a travel agent from third parties and sold as a package to a traveller, such as:

  • transport
  • accommodation
  • tour guides.

Accounting for Value-Added Tax (VAT) under the TAMS is unlike the normal VAT system. In this scheme, 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.