2. THE BUSINESS OF VAT ON TRAVEL DAMON WRIGHT DIRECTOR OF VAT SERVICES – MHA MACINTYRE HUDSON

3. Agenda Travel Management Companies UK TOMS EU place of supply Recovery of VAT

4. Agenda (2) Exhibitions Admission and/or other services Supplies of land, land related or advertising With travel?

5. Agenda (3) Events and Conferences Admission Organisation/management Education With travel?

6. Travel management companies Removal of UK TOMS concessions From 1 January 2010 Can no longer opt in or out B2B for own consumption is retail supply and TOMS can apply Customer invoicing

7. Travel management companies (2) Being an agent Agency agreements (per ATOL?) Hotel billback (who is the supplier?) Other travel services (flights, car hire etc) Disclosure of margin/separate fees Commissions

8. Travel management companies (3) EU Place of supply – agents fees Pre January 2010 Post January 2010 French Hotel Agent UK Customer No UK VAT on fees French Hotel Agent Customer UK VAT at 20%

9. Exhibitions post 1 January 2011 Entry fees to view/admission Is it ancillary to admission (cloakroom etc)? Fees to exhibit/participate Is it access to/right over a dedicated area? Is it advertising? Other services (organisation/management)

10. Events/conferences post 1 January 2011 Admission fee to participate Entry fee to competition/event Closed or open event More than just ticket entry Includes attraction tickets, museum & historical buildings

11. Events/conferences post 1 January 2011 (2) Organisation/management London Olympics hospitality Someone else selling admission? Conferences and education

12. Events/conferences with travel? Application of TOMS Place of supply pre 2011 Place of supply post 2011 In-house event and interaction with TOMS Invoicing for the event/conference services

13. Events/conferences with travel? (2) Travel Management Company Agent v principal Customer invoicing Hotel billback etc HMRC position?

14. PCI compliant – are you? What = the Payment Card Industry Security Standards Council, or PCI SSC – often termed simply “the Council” Who = American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. have incorporated the PCI DSS as the technical requirements for their data security compliance programmes Why = as a protection of client data against fraudulent use from hacking

15. PCI compliant – are you? (2) How = as part of a commitment to data security, card companies require that all merchants and service providers and their covered parties: store cardmember information only to facilitate card transactions as described in their agreement with the card company

16. PCI compliant – are you? (3) Comply with the current Payment Card Industry Data Security Standard, and includes: Employees Agents Representatives Subcontractors

17. PCI compliant – are you? (4) Processors Service providers Providers of point-of-sale equipment, systems or payment processing solutions, as well as any other party to whom a merchant may provide access to cardmember information in accordance with its Card Acceptance Agreement.

18. 5 top tips Consider the VAT liability of the supply, including overseas Consider whether any VAT will be a cost to you and/or your customer Does the status of the underlying supplier have an impact on the VAT liability? Can any VAT cost be managed/reduced through the contractual position (agent v principal, VAT invoicing etc)? Can any VAT cost be managed/reduced through reorganising the structure of the supplies?

19. QUESTIONS

20. Damon Wright – Director of VAT Services Damon has 20 years’ experience in Indirect Tax and VAT. Firstly as an HMRC Senior VAT Inspector, then in practice. Since 1997, he has worked for a big four firm of accountants plus one of the largest on the next tier down. He has also spent some time working in industry for one of the largest UK consumer groups (Virgin). He has extensive direct experience of advising Aviation, Tour Operator and Travel Agent clients, especially over the last 11 years.

21. OFFICE TELEPHONE +44 (0)20 7429 4100 DIRECT LINE: +44 (0)20 7429 0532 MOBILE: +44 (0)7720 590782 EMAIL: Damon.Wright@mhllp.co.uk