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VAT Information Sheet 1/97, May 1997

This information sheet clarifies the requirements and practical implementation of the changes for traders in relation to the trader to trader (wholesale) transactions detailed in Press Notice No 50/95 [Division V16.3].

It has been produced in co-operation with the Association of British Travel Agents (ABTA) and accountants Price Waterhouse. It is to be read in conjunction with Notice No 709/5 “Tour operators' margin scheme” and Press Notice No 50/95.

The airline charter option is covered in Information Sheet 3/96 and the agency option is covered in Information Sheet 4/96.

The information is presented in a question and answer format and supplies some examples of the effects on the VAT payable. It contains an algebraic formula which traders may use if they so wish.

This information was originally included in Briefing Note VAT5A No 1 issued to all local VAT offices in February 1996.

Transport Company Scheme

A Background

1