EasyJet is set to save up to £10 million over three years by registering its EasyJet Holidays venture outside the UK, according to reports.

Travel Weekly reported in November that the airline was considering registering the joint venture with the Lowcost Travel Group outside the UK, meaning it would avoid VAT under the Tour Operator’s Margin Scheme (TOMS) though not escape VAT in other European jurisdictions.

According to a report on the Mail Online website tonight, that move is set to happen with Switzerland the most likely location.

The report quoted sources as estimating the savings could be around £10 million over three years, and said other operators may be encouraged to follow suit.