What is TAMS scheme for Travel Agents?

If you’re an entrepreneur in the travel industry, you may have heard of the Travel Agents’ Margin Scheme (TAMS). This article will explain whether this VAT scheme applies to your activities.

According to the Dutch Tax and Customs Administration, any entrepreneur who sells holidays or trips under their own name is considered a travel agency. Even if you don’t register as a travel agency with the Chamber of Commerce, you may still be subject to the TAMS if you sell all-in trips as a tour operator. However, if you’re a broker or a travel agent who receives brokerage fees, you’ll usually act on behalf of another travel agency and won’t be eligible for the TAMS.

If you add goods or services to a purchased trip, this may be considered “added value,” and normal VAT rules will apply to the added portion. You can find the Dutch Tax and Customs Administration’s definition of added value.

If you sell trips to destinations outside of the EU, you’ll be subject to a 0% VAT rate on the profit margin. However, if the trip takes place partially within the EU and partially outside the EU (e.g., during a transfer), you’ll apply a 21% VAT rate on the portion that takes place within the EU and a 0% VAT rate on the portion that takes place outside the EU. This also applies if there is a stopover where travellers can leave the aircraft. If travellers are unable to leave the plane, you’ll apply a 0% VAT rate to the entire trip.

For example:

if you sell a direct trip from the Netherlands to Asia, you’ll apply a 0% VAT rate to your profit margin. If you sell a trip from the Netherlands to Asia with a transfer in France, you’ll charge a 21% VAT rate on the portion between the Netherlands and France and a 0% VAT rate on the portion from France to Asia. If you sell a direct trip from the Netherlands to Asia with a stopover in France where passengers can board but can’t leave the plane, you’ll apply a 0% VAT rate to the entire trip.

As you can see, the TAMS can be complicated. If you’re unsure about your situation, consult Chater Finance Tax Agent. Send us an email on info@chaterfinance.nl