WHAT IS TOMS?
TOMS (Tour Operators Margin Scheme) is a special VAT scheme for businesses that buy and resell travel services. Under TOMS, VAT is calculated on the margin (profit) rather than the full selling price.
Example:
Scenario | Standard VAT | TOMS |
You buy a hotel room for 800 | - | - |
You sell it for 1000 | - | - |
Your margin | 200 | 200 |
VAT calculated on | 1000 (full price) | 200 (margin only) |
WHAT QONDOR SUPPORTS
Qondor provides the following features to help with margin-based VAT calculations:
Margin-based VAT calculation
VAT articles in Qondor have a "VAT percentage fee" field. This calculates VAT on the margin (Out Price minus In Price) rather than the full selling price.
In Price - Your cost from the supplier
Out Price - What the customer pays
Margin - Out Price minus In Price (your profit)
VAT - Calculated on the margin using the "VAT percentage fee"
Different VAT articles per product
You can apply different VAT articles to each product line. This allows you to use:
Margin-based VAT articles for bought-in travel services
Standard VAT articles for your own in-house services
Margin tracking
Qondor tracks your margins on each product through the In Price and Out Price fields, giving you visibility into profitability.
HOW TO SET UP MARGIN-BASED VAT
Step 1: Request TOMS VAT articles
Contact us to set up VAT articles configured for margin-based calculation. Provide:
The VAT percentage to apply to margins
A name/description for the article (e.g., "TOMS - Accommodation")
Step 2: Apply to products
Open the product in your project
Ensure In Price reflects your supplier cost
Set Out Price to the customer selling price
Select the TOMS VAT article for the price line
Save the product
TOMS AND BILLING MODELS
Billing Model | TOMS Applicable? | Notes |
Standard | Yes | Use TOMS VAT articles for bought-in travel services |
Pass-Through | No | No margin, so TOMS doesn't apply |
Referral | No | You're acting as agent, not principal |
💡 Good to know: If you earn commission by referring customers to suppliers (and the customer pays the supplier directly), you're acting as an agent. Use the Referral billing model instead - TOMS does not apply to agency arrangements.
Need help? Contact us to set up margin-based VAT articles or if you have questions about how to configure Qondor for your TOMS requirements.