Tax & duties

TOMS VAT calculator

Calculate margin output VAT for a UK-established business reselling bought-in travel in its own name. Choose annual reconciliation or a provisional VAT period.

Current UK TOMS; standalone taxi exclusion from 2 January 2026Great Britain and Northern Ireland; location where travel is enjoyed determines margin liabilityReviewed 15 October 2026

Your figures

Example values shown

Replace the example with your details, then calculate.

Type of supply

Calculation

Total selling prices including VAT

Annual mode: whole financial year. Provisional mode: the VAT period.

Annual bought-in direct costs: travel enjoyed in the UK

Include irrecoverable VAT; exclude overheads. Annual mode only.

Annual bought-in direct costs: travel enjoyed outside the UK

Use a documented fair split for mixed journeys. Annual mode only.

Provisional output VAT already accounted for in the year

Annual reconciliation only.

Provisional VAT-inclusive standard-rated margin percentage

Derived from the preceding annual calculation or an acceptable first-year estimate; not an arbitrary profit percentage.

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BEHIND THE NUMBERS

How this calculation works

Annual mode: margin = selling prices − bought-in direct travel costs. Allocate that margin to UK travel in proportion to UK direct costs; output VAT is the UK margin × 20/120. Overseas margin is zero-rated. Deduct provisional output VAT already accounted for to find the annual adjustment. Provisional mode: period sales × the established standard-rated margin percentage × 20/120.

Worked example

The £40,000 UK margin contains £40,000 ÷ 6 = £6,666.67 output VAT. After £5,000 provisional tax, the annual adjustment is £1,666.67 payable.

Example result: £6,666.67

Use the margin, not the full selling price

TOMS accounts for the value added when qualifying bought-in travel is resold. VAT on those bought-in margin-scheme costs is not reclaimed separately. The margin calculation therefore uses their VAT-inclusive cost.

Separate where travel is enjoyed from where you are based

A UK establishment is a condition of this model. Within it, the part of the margin for travel enjoyed in the UK is standard-rated and the outside-UK part is zero-rated. Mixed travel needs a defensible allocation before the costs are entered.

Annual and provisional results serve different jobs

During the year, TOMS normally uses a provisional percentage. The year-end calculation compares the resulting annual liability with what was already accounted for. A negative adjustment can recover excess provisional tax without implying a negative annual output-tax liability.

Assumptions and rounding

Only bought-in travel resold in the same state from a UK establishment, in the operator’s own name.
One combined annual calculation, with correctly classified UK and overseas direct costs.
All values converted to GBP using a permitted and documented method.

Questions about this calculator

Can I calculate VAT for each booking using its actual profit?

The annual mode is for the full financial-year calculation. During the year TOMS normally requires provisional accounting; use the provisional mode with the appropriate established percentage.

Can I deduct office rent from the TOMS margin?

No. General overheads are not bought-in direct travel costs. Eligible overhead VAT is considered separately under normal input-tax rules.

Can a taxi operator use this tool?

Standalone taxi and private-hire journeys are excluded from TOMS from 2 January 2026. A journey ancillary to qualifying principal travel services in the same package can require different treatment.