VAT on Travel Agent

kets

Hi,

I am confused when to charge vat and when not to charge vat to customer for a Travel Agent.

As far as I know vat is not payable on commission.

How does Travel agents and tour operators vat scheme work?

Called HMRC but they asked me to read 709/6, which is confusing.

Thanks

A-Vic

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000135&propertyType=document#P27_1288

hope this link helps

3.7 What is the VAT liability of my commission when it relates to designated travel services?
If you are acting as an intermediary for a tour operator who is established (or has a fixed establishment) in the UK, then your services are standard-rated. If you are acting as an undisclosed intermediary or principal, see sections 4 and 5 and Notice 709/5 Tour operators’ margin scheme