Value Added Tax Act 1994 section 53

Tour operators

Section 53 gives the Treasury power to modify how VAT applies to supplies made by tour operators, including the ability to treat multiple supplies as one and to calculate VAT on a margin basis.

• The Treasury can modify VAT rules for tour operators by order, including treating multiple supplies as a single supply of services
• The value of a tour operator's supply can be calculated on a margin basis — the difference between what the operator charges and what it pays out
• "Tour operator" is broadly defined to include travel agents acting as principal and anyone providing traveller services commonly offered by tour operators or travel agents
• Orders under this section can override group registration rules and restrict input tax recovery, without requiring affirmative parliamentary procedure