What is the Tour Operator Margin Scheme (TOMS)?

TOMS is a mandatory EU VAT scheme that applies to tour operators and travel agents who buy in travel services and resell them as packages. Instead of standard VAT on the full selling price, TOMS requires VAT only on the profit margin. This is governed by EU VAT Directive Article 306-310 and implemented in every EU member state.

Does TOMS apply to my vacation rental agency?

If your agency buys accommodation wholesale and resells it, you are likely acting as a principal and TOMS applies. Nokumo helps you determine your TOMS exposure and configure the correct scheme.

What is a B2B TOMS election and when should I use it?

The EU allows an operator to opt out of TOMS for packages sold to other businesses (B2B). This allows B2B clients to recover input VAT, which they cannot do under TOMS. Nokumo tracks per-booking whether the B2B election was made and adjusts the VAT calculation accordingly.

How does Nokumo calculate the TOMS margin?

Nokumo matches each sold package with the underlying bought-in costs. The TOMS margin is: selling price minus (bought-in accommodation + transport + service costs). VAT is applied to the margin at the standard rate of the member state where the services are enjoyed.

Can I use Nokumo if I operate across multiple EU countries under TOMS?

Yes. For TOMS, the VAT jurisdiction is where the travel service is actually performed. For accommodation, this means the VAT is due in the country of the hotel/property. Nokumo tracks the tax jurisdiction per booking and allocates TOMS margin correctly across countries.

EU Directive 2006/112/EC · Art. 306-310

TOMS margin VAT. Calculated per booking, not per spreadsheet.

EU Directive 2006/112/EC Articles 306–310 require tour operators to calculate VAT on the margin between bought-in cost and sale price — per VAT period, per country. Nokumo matches costs to bookings automatically and produces the country-by-country breakdown your accountant needs at period-end.

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The TOMS problem — and how Nokumo solves it

TOMS requires matching every sold package to its bought-in cost, calculating the margin per VAT period, and reporting country-by-country. Most operators calculate this manually in spreadsheets — or miss it entirely and face penalties. Nokumo automates it end-to-end.

Bought-in cost matching per booking
Margin calculation per VAT period
Country-by-country breakdown
B2B election tracking

See the margin-scheme tax shield in real numbers

If you lease a property and re-let it to guests, standard VAT rules tax the whole booking — and a private landlord can't give you VAT to reclaim. The EU Margin Scheme (TOMS) taxes only your margin. Try it:

Your booking

Gross guest revenue

€

Total all-inclusive price the guest pays

Bought-in accommodation cost

€

Rent paid to the property owner for the stay

Bought-in cleaning / services

€

Turnover, linen, transfers bought from third parties

Standard VAT rate

VAT rate in your country of establishment

VAT you save on this booking

€141.67

€200.00 under standard VAT vs €58.33 under the margin scheme

Gross guest revenue (VAT incl.)€1,200.00

Less: bought-in direct costs− €850.00

TOMS gross margin€350.00

VAT fraction (20 ÷ 120)0.1667

VAT due on margin€58.33

Net margin retained€291.67

Effective tax drag4.86%

VAT due — standard rules vs the EU Margin Scheme

In Nokumo, this is one click

You don't do any of this maths. Nokumo tags every booking's bought-in costs, applies the margin fraction, unbundles in-house services onto standard VAT, and produces an audit-ready figure for your return — automatically. What takes an accountant hours per period happens in real time.

Hours of monthly reconciliation removed

Bought-in vs in-house split automatically

Compliant margin-scheme invoices, every time

Invoicing compliance

A margin-scheme invoice must show a single gross price with no VAT breakout, and must print the legal directive phrase. Nokumo applies the right wording for your country automatically:

🇬🇧 “Margin scheme — Travel agents”

🇩🇪 “Sonderregelung für Reisebüros”

🇫🇷 “Régime de la marge — Agences de voyages”

🇪🇸 “Régimen especial de las agencias de viajes”

See TOMS automation in a demo

Illustrative calculation based on the EU Margin Scheme (ECJ Alpenchalets). Not tax advice — confirm treatment for your country with a qualified adviser.

TOMS applies across EU member states

Croatia: TOMS applies for package tour operators and accommodation agencies

Slovenia: TOMS mandatory for operators buying in accommodation and reselling

Germany: Differenzbesteuerung (§25 UStG) mirrors EU TOMS

Austria: Reiseleistungen rules follow EU TOMS Directive Art. 306-310

Italy: TOMS mandatory for tour operators and accommodation-only packages

TOMS — what Nokumo automates

Automatic bought-in cost matching per booking

TOMS margin calculation per VAT period

Country-by-country breakdown

B2B TOMS election tracking per invoice

Integration with DATEV / local accounting systems

Audit trail for every calculation

How Nokumo handles TOMS

Step 1

Booking received

A package booking is received — from your own site, OTA, or direct. The destination country is recorded automatically.

Step 2

Cost matching

Nokumo matches the booking to your bought-in costs — hotel wholesale, transfers, and fees from suppliers in your accounts.

Step 3

Margin calculated

The TOMS margin is calculated in real time. If a B2B election applies, the calculation switches to standard VAT on full price.

Step 4

Period report

At VAT period end, Nokumo generates a TOMS report per country, per tax period — ready for your accountant or tax authority.

TOMS FAQ

Related compliance modules

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