The article examines the Tour Operators’ Margin Scheme (TOMS), highlighting its intended simplification for travel agents and the significant challenges it poses, such as blocked input VAT and inconsistent application across EU Member States. It discusses the scheme’s impact on profitability, competitive distortions, and the European Commission’s public consultation on reforms launched in 2025.
Maltese operators cannot recover input VAT on purchases such as French hotel stays, turning that VAT into a cost that can reduce profitability.
The European Commission launched the consultation between July 2025 and October 2025.
The 2017 EU TOMS Study estimated that blocked input VAT on direct costs amounts to about €1.15 billion per year.
The margin is taxed at the standard VAT rate, regardless of the individual rates applied to the travel services within the package.
EU operators face VAT recovery barriers due to blocked input VAT, while non‑EU operators are not subject to TOMS and therefore do not face these barriers, creating competitive distortions.
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RTC Suite · 1 day ago
On 13 February 2026 CEN approved updates to EN 16931‑1, modernising the standard for B2B e‑invoicing and ViDA‑driven reporting across the EU. The revision adds mandatory fields such as IBAN details, early‑payment discount and late‑payment charge indicators, and clarifies syntax bindings to UBL and UN/CEFACT CII, requiring businesses to adapt validation and mapping processes for automated compliance.
LinkedIn Article by Markus Hornburg · 4 days ago
The article argues that compliance with country mandates should be seen as a baseline, not the ultimate goal. It emphasizes that true invoicing success lies in data governance and ensuring invoices are accurate, fraud‑free, and defensible in accounting, rather than merely passing XML validation. The author highlights mandates in Poland, France, Belgium, Germany, and Saudi Arabia, and calls for a holistic approach to tax determination and data integrity.
Medium · 4 days ago
This article explains the technical intricacies of the Peppol discovery process, detailing how participant identifiers are hashed and resolved via DNS to Service Metadata Publishers (SMPs). It highlights key components such as the Service Metadata Locator (SML), SMP metadata signing, and the lack of fallback routing, underscoring the importance of correct configuration for reliable e‑invoicing.
Fintua · 5 days ago
The February 2026 Global VAT Guide provides a concise overview of recent VAT and e‑invoicing developments across Europe, the EU, Japan and Mexico. Key updates include Belgium’s new place‑of‑supply rules for virtual events, Croatia’s extended VAT return deadline, the Czech Republic’s InstatEvo transition, a temporary €3 customs duty on low‑value goods in the EU, and changes to Belgium’s federal tax payment BIC code.
Grant Thornton · 5 days ago
The article reviews recent EU Court of Justice rulings that clarify the VAT treatment of transfer‑pricing adjustments in intragroup transactions. It explains that payments calculated under OECD methods may be treated as VAT‑subjected remuneration for services, while unilateral profit allocations are generally outside VAT scope. The piece also highlights the pending Stellantis Portugal opinion and the need for businesses to document services and support evidence to secure VAT recoverability.
Meridian Global Services · 5 days ago
The OECD’s 2026 report outlines guidance on Digital Continuous Transactional Reporting (DCTR), urging jurisdictions to adopt real‑time VAT transaction reporting and structured e‑invoicing. It highlights the EU’s ViDA initiative, slated for rollout by 2030, and the requirement for intra‑EU invoicing interoperability by 2035. Businesses are advised to modernise ERP and billing systems, improve data quality, and strengthen security to meet the forthcoming digital compliance landscape.
