Following the UK’s Autumn Budget announcements, changes are being made to the VAT Tour Operators’ Margin Scheme from 2 January 2026.
The change will exclude taxis and private hire vehicle journeys from the Tour Operators’ Margin Scheme, unless the journey is supplied in conjunction with other specified travel services.
This will affect businesses that buy in and resell taxi or private hire vehicle journeys as principal, or as agents acting in their own name. For the most part these will be taxi and private hire vehicle operators, though other businesses could be affected.
This does not impact journeys where private hire vehicle operators or taxi operators act as a disclosed agent, or journeys provided directly by the driver to the passenger (for example a taxi hailed in the street).
Under the Customs and Excise Agreement 1979, the Isle of Man Government agrees to keep the management and administration of VAT aligned with the United Kingdom.
For general enquiries please email customs@gov.im or call +44 1624 648130 (Monday to Friday 8:30am to 4:30pm).
