Austria: Tour Operators Margin Scheme (TOMS)

The TOMS, Tour Operators Margin Scheme, was introduced in 1977.

TOMS is a VAT regime in the EU VAT Directive and is designed to simplify VAT compliance for tour operators.

Previously, Austria applied TOMS for travel packages sold to private consumers (B2C transactions) and normal VAT rules applied to B2B transactions.

From 1 January 2022, TOMS was extended to all types of customers.

This change will affect foreign tour operators that purchase travel services, such as accommodation and passenger transport, in Austria for resale purposes. They will not be entitled to deduct input VAT on purchases from other businesses.

From 1 January 2022, the calculation of tour operators’ VAT base was reviewed.

Tour operators must now determine the taxable amount for each travel package sold and a simplified calculation of the margin is no longer permitted.

Company business trips to Austria remain unchanged. Input VAT deduction is still permitted as long as the services are purchased directly from a supplier and for the business and no resale takes place. Businesses will receive TOMS invoices without VAT if they obtain a travel package from a tour operator and no input VAT deduction will be permitted.

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