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VAT for overseas Travel Operator

VAT for overseas Travel Operator

I have a potential client who is based in India who organises travel tours for UK customers to Indian and Far East.  They will also book hotels and flights for UK customers and sell tour packages to other UK Travel agents.   The intention is to move the customer contracts from the Indian company to the UK Company

They wish to form a UK company and get a ATOL license.  

They will not have a business or fixed establisment since the operation is being run from India. There will be no employees in the UK company

Will VAT registeration for TOMS be under Non Established Taxable Person (NETP) i.e Indian company or under the UK company.  I am not sure if it is a stipulation under ATOL to that a UK company is required hence the revenue will need to be booked under the UK company rather than the Indian company.

 

 

 

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By Matrix
24th Nov 2017 19:07

I would start with the direct tax issues, not indirect. I don't know what you have been asked to do for this prospect but (if they engage you) you should establish all the facts, including the ATOL requirements and why the prospect thinks they require a UK company, and discuss the optimal structure with their Indian tax adviser. It may be that no UK entity is required.

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By Jim100
24th Nov 2017 22:32

Yes Matrix you are correct - thank you.

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