Following the Judgment of the EU court of Justice ‘Commission v. Spain’, 26 September 2013, C-189/11 that we reported last year here, the Netherlands have recently determined that it will implement the interpretation of the ECJ on the Tour Operator Margin Scheme (TOMS).
This means that TOMS will now be applicable to business to business (B2B) travel supplies and not just supplies to the final traveler.
As a transitional measure the current rules in relation to the application of TOMS remains in place i.e. supplies to the final travelers only (not B2B supplies) if the operator entered / enters into an agreement with the customer before 31 March 2015 and the travel services are rendered by 31 October 2015.
The Netherlands will implement the interpretation of the ECJ on the Tour Operator Margin Scheme (TOMS)
Not all tax authorities have decided to implement the ECJ ruling, with the UK determining that it will await an EU Commission review on the application of the scheme as previously reported here.