Where a tour operator acquires goods or services of a description for the time being specified in Schedule 5 of the Value Added Tax Act 1983, in order to supply them as a designated travel service or as part of such a service, the rate at which tax shall be charged shall be nil on that portion of the value of the designated travel service supplied which is attributable to the goods and services specified in the Schedule.

Where a tour operator acquires goods or services of a description for the time being specified in Schedule 6 to the Value Added Tax Act 1983, in order to supply them as a designated travel service, or part of such a service, no tax shall be chargeable on that portion of the value of the designated travel service supplied, which is attributable to the goods and services specified in the Schedule.