Are you an entrepreneur who works in the travel industry? Then you’ve probably heard of the Travel Agents’ Margin Scheme or TAMS (reisbureauregeling in Dutch). In this blog, we’ll explain whether this VAT scheme also applies to your activities.
The definition of travel agent
For the Dutch Tax and Customs Administration, all entrepreneurs who sell holidays or trips under their own name are regarded as travel agencies. Even if you’re not registered as a travel agency with the Chamber of Commerce, but, for example, do sell all-in trips as a tour operator, the TAMS may also apply to you. Are you a broker or a travel agent that receives brokerage fees? Then you will act on behalf of another travel agency in most cases, meaning you cannot use the TAMS and the normal VAT rules apply.
Exceptions and trips outside of the EU
When you purchase (part of) a trip and then add goods or services to it yourself, this may be regarded as a so-called ‘added value’. If this is the case, normal VAT rules apply on the added part. What the Dutch Tax and Customs Administration’s definition of added value is can be found here (in Dutch).
If you sell trips to destinations outside of the EU, 0% VAT is applicable on the profit margin. But please note that there’s an exception to this exception: if the trip takes place partly within the EU and partly outside the EU (for example: a transfer), you apply 21% VAT on the part that takes place within the EU and 0% on the part that takes place outside the EU . This also applies if a stopover is made where travellers can leave the aircraft. If travellers do not have the possibility to leave the plane, you apply 0% on the whole.
Examples
- You sell a direct trip from the Netherlands to Asia. In this case you apply 0% VAT on your profit margin.
- You sell a trip from the Netherlands to Asia, with a transfer in France. In this case you charge 21% VAT on your profit margin of the part between the Netherlands and France, and 0% VAT on the part from France to Asia.
- You sell a direct trip from the Netherlands to Asia. A stopover is made in France where passengers can board, but previously boarded passengers cannot leave the plane. In this you apply 0% VAT on the whole.
As you can see, the TAMS can be quite complicated. If you’re unsure about what applies to your situation, you can always contact your bookkeeper.
