The Revenue has introduced regulations (Statutory Instruments No 289) for the purposes of implementing the Travel Agent's Margin Scheme as announced in F(No2)A 2008. These Regulations come into effect on 1 January 2010.
The Travel Agents Margin Scheme in broad terms provides that from 1 January 2010 "Travel Agents" will pay VAT on the profit margin realized on the supply of the travel package.
Full details of the regulation is available here