Any Answers? VAT on package holidays - how does it work?

I just started selling package holidays and know they attract VAT.

Unfortunately, the official VAT Guidelines booklet does not explain the PRACTICAL aspects of VAT reporting.

For Tour Operators that collect payments bt Direct Debit, confirmation invoices seem to show that they return to me the VAT element of our commission.

Can anybody explain how VAT works, or recommend a reference source? Thanks.
Richard Lyons