VAT rules for tour operators in Ireland are not always straightforward. Yet understanding them is essential for remaining compliant, maximising your margins, and ensuring long-term profitability. Whether you’re offering guided EU city tours, local Irish experiences, or long-haul adventures, getting your VAT treatment right protects your business.
At RizFin, we support small Irish businesses with financial clarity — including the application of VAT rules for tour operators in Ireland. In this complete guide, we’ll walk you through how VAT applies to travel services, based on Revenue’s Travel Agents’ Margin Scheme (TAMS).
📌 What Is TAMS and Why It Matters?
TAMS is a special VAT scheme for tour operators who buy in travel services (like accommodation, flights or excursions) and resell them as packages. This scheme changes how VAT is applied and reported.
Under TAMS:
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VAT is applied to your margin, not the total package price
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Margin on EU services is taxed at 23%
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Margin on non-EU services is zero-rated
These VAT rules for tour operators in Ireland are mandatory if you’re acting as the principal or an undisclosed agent. Applying TAMS correctly helps reduce errors and audits.
🔍 Step-by-Step: How to Apply VAT Rules for Tour Operators in Ireland
Let’s explore how you decide what VAT applies based on your role, service location, and business model.
✅ Step 1: Are You a Principal or an Intermediary?
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Principal: You buy and resell the services → TAMS applies → VAT on margin
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Intermediary: You arrange services and earn commission → Normal VAT rules apply
If you’re unsure, consider whether you’re seen by the customer as the supplier. This is a defining test under VAT rules for tour operators in Ireland.
✅ Step 2: Are You a Disclosed or Undisclosed Agent?
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Disclosed Agent: Customer knows they’re booking with a third party → VAT on commission only
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Undisclosed Agent: Customer believes you are the provider → TAMS applies
Being an undisclosed agent pulls you into TAMS automatically under VAT rules for tour operators in Ireland.
✅ Step 3: Where Are the Services Enjoyed?
| Location | VAT Treatment |
|---|---|
| Ireland or EU | 23% VAT on margin |
| Outside the EU | Margin is zero-rated |
| Mixed Destinations | Apportion margin required |
This is one of the most critical distinctions under the VAT rules for tour operators in Ireland, particularly for cruise and long-haul operators.
✅ Step 4: Bought-In vs In-House Services
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Bought-In Services: Covered by TAMS → VAT on margin only
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In-House Services: Normal VAT rules (usually 13.5%) → VAT on full amount
Proper separation of service types is essential for applying the VAT rules for tour operators in Ireland accurately in both pricing and invoicing.
🧾 Example of How It Works
Let’s say you sell a €3,000 package:
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€2,500: Bought-in EU hotel + flights → VAT on margin under TAMS
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€500: In-house guided tour in Dublin → VAT at 13.5%
Only the margin on the €2,500 is subject to VAT. The €500 in-house service is taxed separately under standard VAT rules for tour operators in Ireland.
📊 Simplified VAT Accounting Options
To support small businesses, Revenue allows simplified VAT methods under TAMS.
Option 1: Estimate Annual Margin
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Estimate average margin %
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Apply across each VAT period
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Reconcile at year-end
Option 2: Estimate Per Journey
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Estimate margin per trip
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Apply VAT as tours begin
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Adjust at year-end
These methods are specifically designed to help apply VAT rules for tour operators in Ireland more efficiently without burdening small teams with admin.
🌍 Mixed EU and Non-EU Travel: Apportionment Required
Many tour operators provide services across multiple regions. If a package includes EU and non-EU destinations, your margin must be apportioned:
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23% VAT applies to the EU portion
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0% VAT applies to the non-EU portion
Correctly apportioning margin is a compliance requirement under VAT rules for tour operators in Ireland and must be supported by clear records.
🤝 What If You’re Just an Intermediary?
If you are acting as a disclosed agent, meaning the customer knows they’re buying from someone else:
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TAMS does not apply
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You only charge VAT on your commission
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VAT location rules depend on customer and service location
Understanding your role as intermediary vs principal is foundational to getting VAT rules for tour operators in Ireland right.
💼 Summary Table: VAT Rules for Tour Operators in Ireland
| Scenario | VAT Treatment |
|---|---|
| Acting as Principal (TAMS) | VAT on margin only |
| Disclosed Agent (Intermediary) | VAT on commission only |
| In-House Services | Normal VAT rules (13.5%) |
| Bought-in Services (EU) | VAT at 23% on margin |
| Bought-in Services (non-EU) | 0% VAT on margin |
| Mixed EU/Non-EU | Apportion and apply accordingly |
| Simplified Accounting (Opt 1/2) | Estimate and reconcile annually |
This table should serve as your quick-reference guide for applying VAT rules for tour operators in Ireland correctly.
🧾 Do Tour Operators Show VAT on Invoices?
This is a common question when applying VAT rules for tour operators in Ireland, especially under TAMS.
🔹 If TAMS Applies:
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No VAT is shown on the customer invoice
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VAT is calculated internally on the margin
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Customers cannot reclaim VAT
Suggested invoice note:
“This supply is subject to the Tour Operators Margin Scheme. No VAT is chargeable or recoverable by the customer.”
🔹 If In-House Services Are Included:
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VAT must be shown (typically 13.5%)
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These services are taxed under normal VAT rules, not TAMS
🔹 For Mixed Packages:
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Separate the invoice into TAMS and in-house components
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Only show VAT on the in-house portion
This level of clarity is essential for applying VAT rules for tour operators in Ireland with full Revenue compliance.
📎 Official Guidance
For in-depth guidance, consult Revenue’s official TAMS manual — the core legal reference for VAT rules for tour operators in Ireland.
🤝 How RizFin Can Help
We help Irish tour operators:
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Apply TAMS and standard VAT rules accurately
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Separate in-house and third-party services in pricing
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Choose a simplified VAT accounting method
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Issue clear, compliant invoices
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File accurate VAT returns
If you’re feeling unsure about any of the above, you’re not alone. Many small operators need help making sense of VAT rules for tour operators in Ireland — and we’re here for that.
📩 Need Help with VAT?
If you’re still unsure about TAMS, intermediary roles, or invoice formats:
👉 Visit RizFin.ie or book a consultation today.
Let’s simplify your finances — and give you confidence around VAT rules for tour operators in Ireland.
