Agents who fail to comply with the new EU ‘place of supply’ rules could be fined up to £1,500.
The rules have deemed submission of an EC sales list that highlights the total commission earned by agents who contract with hotels or other overseas suppliers directly mandatory.
David Bennett, VAT partner at accountants Saffery Champness, urged all agents to start accumulating clients’ VAT numbers for use on the sales list.
While he agreed that setting up the systems to create a sales list was rather difficult, Bennett added that doing so was feasible only for agencies that were earning requisite commissions. He also warned agencies to steer clear of the £1,500 fine that HM Revenue & Customs (HMRC) was soon planning to impose for every missing list.
Bennett disclosed that a conference of the EU member states, organised on February 3, had sided with the idea of reviewing the Tour Operators’ Margin Scheme. The revamped scheme hopes to iron out the discrepancies in the present one. Another meeting of the member states is due to be held in this regard, possibly in April.
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