Important notice – TOMS (26/01/2010)
Along with the standard rate of VAT returning to 17.5%, the VAT element on meeting and event services changed with effect from 1st January 2010. As a result, Oxford International’s clients will need to appoint Oxford International as a Disclosed Agent, otherwise they will not be able to reclaim input VAT on costs relating to any travel components of an EU meeting or event.
This will mean that the cost of an event from 1st January 2010 onwards could be higher because you as the client will no longer have the opportunity to reclaim input VAT on event costs – UNLESS we change our contracting process and you appoint Oxford International as a Disclosed Agent.
The VAT change applies to ALL member states of the EU and is an attempt to simplify the VAT regulations for goods and services supplied ‘cross border’ throughout Europe. For several years there has been a pan-European VAT scheme called Tour Operators’ Margin Scheme (TOMS). It applied to European package holidays sold to consumers and included a ‘built in’ VAT element that is non recoverable by consumers.
As an Event Management Company (EMC) working with commercial clients we took the option to ‘opt out’ of the scheme and have always applied VAT as a normal business (recoverable) charge. However the option to ‘opt out’ has been withdrawn and the scheme now applies to Business-to-Business events.
By appointing Oxford International as a Disclosed Agent you will be able to reclaim input VAT incurred on direct EU event costs going forward. The effect of disclosed agency arrangements is that input VAT is recoverable subject to normal rules applying to VAT charges on an EMC’s fees. Thus any potential increase in the cost of events as a result of the TOMS opt-out will be avoided.
We have written to all our clients providing details of the EU VAT scheme and instructions on how to appoint Oxford International as a Disclosed Agency. If you have not received the information or have any questions, please contact our Finance Director, Nigel Hayes on +44 (0) 1865 511 550 or email nigel.hayes@oxfordint.co.uk.