Trafalgar Tours loses VAT appeal
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• The Court of Appeal has ruled that coach company Trafalgar Tours, which was marketed through its parent company and overseas subsidiaries, must account for VAT on the money paid for the tours by passengers, rather than the amount it actually received after commission had been deducted.
Trafalgar Tours had appealed against a decision by Justice Popplewell that a vAT tribunal was right to rule that VAT was due on the brochure price of the tours.
Lord Justice Slade said the company was the party with which the passengers contracted; that any sums paid by passengers to travel agents or overseas subsidiaries was received on behalf of Trafalgar; and that the only reason the company did not receive the full sum was that it allowed commission to be deducted for the agents' services in marketing the tours.