Bulgaria to implement TOMS for wholesale supplies

The Bulgarian authorities have announced that with effect from 1 January 2017, the tour operator’s margin scheme (commonly referred to as TOMS) will apply to B2B wholesale supplies of travel packages, as well as supplies made to end users.

Until now, as with a number of other EU member states, B2B wholesale supplies have been treated in accordance with the place of supply of services rules introduced in 2010, however this contravenes EU law, and indeed was the subject of numerous infrigement proceedings against EU member states.

Businesses making such supplies should review agreements and transactions, particularly as input tax recovery will be significantly affected, as will reporting obligations.

Zara Consult Menu