UT (Tax & Chancery) UT/2023/000091 - [2025] UKUT 00014 (TCC)

It is convenient to start by setting out the EU provisions which establish a special scheme for travel agents and tour operators. Save where the context otherwise requires, we shall refer to such businesses as “travel agents”. The provisions are contained in Articles 306 to 310 Council Directive 2006/112/EC (thePrincipal VAT Directive or “PVD”). The EU provisions were implemented by section 53 Value Added Tax Act 1994 (“VATA 1994”) and the Value Added Tax (Tour Operators) Order 1987 (“the TOMS Order”). It is common ground that the TOMS Order must be construed consistently with the PVD, although how the TOMS Order is to be construed is very much in issue. It is also common ground that following the UK’s exit from the EU, EU law continues to apply to all the periods under appeal because they pre-date the implementation period completion day.