Value Added Tax (Tour Operators) Order 1987
| Jurisdiction | UK Non-devolved |
| Citation | SI 1987/1806 |
| Year | 1987 |
1987 No. 1806
VALUE ADDED TAX
The Value Added Tax (Tour Operators) Order 1987
Made 14th October 1987
Laid before the House of Commons 21th October 1987
Coming into force 1st April 1988
The Treasury, in exercise of the powers conferred on them by sections 3(3), 6(6), 16(4), 37A(1) and (2) and 48(6) of the Value Added Tax Act 19831and of all other powers enabling them in that behalf, hereby make the following Order:
Citation and Commencement
1. This Order may be cited as the Value Added Tax (Tour Operators) Order 1987 and shall come into force on 1st April 1988.
Supplies to which this Order applies
2. This Order shall apply to any supply of goods or services by a tour operator where the supply is for the benefit of travellers.
Meaning of “designated travel service”
3.—(1) Subject to paragraphs (2), (3) and (4) of this article, a “designated travel service” is a supply of goods or services—
(a)
(a) acquired for the purposes of his business; and
(b)
(b) supplied for the benefit of a traveller without material alteration or further processing;
by a tour operator in a member State of the European Community in which he has established his business or has a fixed establishment.
(2) The supply of one or more designated travel services, as part of a single transaction, shall be treated as a single supply of services.
(3) The Commissioners of Customs and Excise may on being given notice by a tour operator that he is a person who to the order of a taxable person—
(a)
(a) acquires goods or services from another taxable person; and
(b)
(b) supplies those goods or services, without material alteration or further processing, to the taxable person who ordered the supply for use in the United Kingdom by that person for the purpose of that person’s business other than by way of re-supply—
treat supplies within sub-paragraph (b) as not being designated travel services.
(4) The supply of goods and services of such description as the Commissioners of Customs and Excise may specify shall be deemed not to be a designated travel service.
Time of supply
4.—(1) Sections 4 and 5 of the Value Added Tax Act 1983 shall not apply to any supply comprising in whole or in part a designated travel service.
(2) Subject to paragraphs (3) and (4) of this article, all supplies comprising in whole or in part a designated travel service shall, at the election of the tour operator making the supplies, be treated as taking place either—
(a)
(a) when the traveller commences a journey or occupies any accommodation supplied, whichever is the earlier; or
(b)
(b) when any payment is received by the tour operator in respect of that supply which, when aggregated with any earlier such payment, exceeds 20% of the total consideration, to the extent covered by that and any earlier such payment, save insofar as any earlier such payment has already been treated as determining the time of part of that supply.
(3) Save as the Commissioners of Customs and Excise may otherwise allow, all supplies comprising in whole or in part a designated travel service made by the same tour operator shall, subject to paragraph (4) of this article, be treated as taking place at the time determined under one only of the methods specified in paragraph (2) of this article.
(4) Where—
(a)
(a) a tour operator uses the method specified in paragraph (2)(b) to determine the time of a supply; and
(b)
(b) payment is not received in respect of all or part of the supply;
notwithstanding paragraph (3), the time of any part of that supply, which has not already been determined under paragraph (2)(b), shall be determined in accordance with paragraph (2)(a).
Place of supply
5.—(1) The application of sections 6 and 8 of the Value Added Tax Act 1983 in relation to a supply of services or of a designated travel service shall be modified in accordance with the provisions of this article.
(2) A designated travel service shall be treated as supplied in the member State of the European Community in which the tour operator has established his business or, if the supply was made from a fixed establishment, in the member State in which the fixed establishment is situated and in no other place.
(3) Any supply by a tour operator, not being a designated travel service, of transport of persons or their effects shall be treated as being made:
(a)
(a) in the country in which the services are performed to the extent that they are performed in that country; or
(b)
(b) wholly in the country in which the services are performed or partly performed notwithstanding that they may be partly performed outside the territorial jurisdiction of that country, provided that they are not also partly performed in any other country.
(4) Any supply by a tour operator, not being a designated travel service, of cultural, artistic, sporting, entertainment, educational, scientific or related services or of the right of attendance at conferences, shall be treated as being made in the place where the services are performed.
(5) Any supply by a tour operator, not being a designated travel service, of accommodation, or of facilities for camping in tents and caravans, or for parking vehicles, shall be treated as being made in the place where the accommodation or facilities are provided.
(6) Any supply by a tour operator by way of hire of any means of transport which, apart from this paragraph, would be treated as being made outside the European 2
Community, shall be treated as being made within the United Kingdom where the means of transport is used within the United Kingdom.
6. The Value Added Tax (Place of Supply) Order 19842shall be amended as follows:
(a) by deleting article 4 and substituting the following:
“4. This Order applies to the supply of services of or incidental to the provision of a course of formal instruction in the United Kingdom other than such a supply made as a designated travel service or as part of such a service.”; and
(b) by deleting article 5 and substituting the following:
“5. A “designated travel service” has the same meaning as in the Value Added Tax (Tour Operators) Order 1987.”.
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