| Journal: TWUK | Section: |
| Title: | Issue Date: 26/06/00 |
| Author: | Page Number: 80 |
| Copyright: Other |
Customs set to level charge on service fees
TRAVEL agents are being warned they may have to impose VATon booking fees they charge to clients.Customs and Excise officials have decided that VAT is payable on service charges set by agents but has yet to decide whether it will make the tax zero-rated or the standard 17.5%.
BTI UK head of client finance Nigel Bourke said:”It is a very complex area.
“If you charge VATyou should pay it to the tax man. Some companies are able to offset some types of VAT but it depends on the type of services that you provide to individual clients.
“We want the situation to be sorted out as soon as possible as it affects the agreements that travel agents are now putting into place.”
Companies have to submit VAT returns to Customs and Excise, and failure to do so can result in hefty fines.