VAT on holidays

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robd10

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I’ve booked a holiday for the Dominican Republic in March. I have just received a letter from the Holiday company warning me that I will be liable to pay VAT unless I pay the balance before January 1st. The Travel agent confirms this and informed me the VAT is payable on the full holiday price. I’ve looked on the revenue site http://www.revenue.ie/en/tax/vat/leaflets/travel-agent-margin-scheme.html
But it’s a bit of a maze. Will someone clarify, confirm that we all will have to pay VAT on the total price of a holiday booked through a travel agent/holiday company What ways round this will there be for future years holiday bookings?
 
I thought Vat was payable on the agent's commission, not the full holiday price. I did try reading the revenue briefing, but it just made me want to cry, far too complicated.
You have the option to avoid the vat by paying before 2010, but not after that.
 
Terribly complicated wording on the revenue site, the travel agent explained they would be going on courses (I’m not surprised) before it was implemented . I too thought the VAT was payable on the agents margins which I assumed were their services/profits but the agent said not it was the full price. I sure hope they are wrong… I’ll just pay the balance before the end of the year to save complications but will look into it more deeply before the next holiday.
 
Your travel agent has -amazingly at this late stage -not understood the new VAT rules.

There is no VAT payable in Ireland on either the full price -or even the profit margin - for nonEU destinations, such as Dominican Republic.

For EU destinations the VAT is only on the profit margin -and that VAT is payable in either Ireland or the EU country of destination, depending on how the holiday is booked ( It's all explained in the last few pages of the Revenue guide mentioned above ).
 
Thanks for the clarification, I have to admit giving up reading the revenue guidelines, to heavy for a mere mortal, I admire your perseverance. I’ll try reading them again and then make a phone call both the holiday company (who sent the original letter) and then the travel agent (who forwarded the letter on). A very poor and misleading service.
 
Actually, robd, if you are going in March then you'd probably have to pay in January anyway. A few weeks earlier won't make much difference. You may find it stressful to argue with someone who doesn't know the rules. Actually, since I first read your OP

(I have spoken to several travel agents and none of them seems to be confident about the rules - I seem to be the only who has studied that Revenue leaflet; I've even phoned Revenue with questions and they couldn't give me exact answers to my questions !)
 
You’re right, I’ll save on the stress and pay before the end of the year.
Hopefully your advice may also save others from hassle.
 
Another fine mess the government is getting us into. But, the Coping Class will cope, as usual. VAT not payable on holidays outside of the EU, but payable on holidays within the EU - Which inspiring idiot thought this one up?
 
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