Updated for 2026/27 Tax Year
Tour Operators Margin Scheme (TOMS) Calculator
Calculate VAT under TOMS for travel agents and tour operators. VAT is charged on the margin, not the full selling price.
Calculate TOMS VAT
Enter your package selling price and costs
Total charged to customer
Bought-in services (flights, hotels)
Your own services (standard VAT)
TOMS Calculation
TOMS Margin
£500.00
Margin Percentage
25.0%
VAT on Margin (1/6)
£83.33
VAT on In-House (20%)
£40.00
Total VAT Due
£123.33
Net Profit
£216.67
How TOMS Works
The Tour Operators Margin Scheme is a special VAT scheme for businesses that buy in and resell travel, accommodation, and certain other services.
Margin Scheme Supplies
- • Accommodation
- • Passenger transport
- • Trips and excursions
- • Car hire
VAT on margin only (1/6)
In-House Supplies
- • Your own transport
- • Tour guides you employ
- • Own hotel services
- • Other direct services
Standard 20% VAT
Related Calculators
Annual Calculation
TOMS calculations are done annually, with provisional figures used for quarterly returns.