HMRC has recently released a Business Brief as an update on the treatment of B2B wholesale supplies of travel services following the recent ECJ infraction proceedings we reported last year. In this brief HMRC has determined that whilst the ECJ decision in the infraction proceedings is binding on all Member States, HMRC does not intend to change the operation of TOMS in the UK at present.
HMRC’s reasoning is twofold, firstly that EU commission has highlighted the fact it intends to review the system of TOMS as a whole, and secondly as making these changes would be very disruptive and costly for businesses.
HMRC has stated they intend to review this position in a year’s time.
The business brief can be found here