VAT Reclaim for Travel Agents and Hotels | How to recover what you’re owed

Disclaimer

This article is provided for general informational purposes only and does not constitute professional tax, legal, or financial advice. VAT reclaim rules, eligibility, deadlines, and procedures vary by jurisdiction and are subject to change. While we strive to ensure the accuracy of the information presented based on available sources as of October 2025, Antravia and its contributors make no representations or warranties regarding its completeness or suitability for your specific circumstances.

Readers are strongly encouraged to consult with a qualified tax advisor, accountant, or legal professional before making any decisions related to VAT reclaims or international tax compliance. Antravia assumes no liability for any errors, omissions, or actions taken in reliance on this content. For personalized guidance, please contact a licensed expert in your relevant jurisdiction.

VAT Reclaim for Travel Agents and Hotels: How to recover what you’re owed

Summary

VAT is often overlooked by travel agents and hoteliers, yet it can be the difference between a profitable year and a loss. Whether you are booking conferences abroad, paying overseas suppliers, or managing multi-jurisdictional invoices, reclaiming VAT can free up cash flow and protect margins. Many businesses miss out because they assume reclaim is too complex or not worth the effort. In reality, with the right systems and advice, recovering VAT is both achievable and financially worthwhile.

Key Points

1. Why VAT Reclaim Matters

• VAT on overseas expenses (e.g. hotels, meals, conferences, transport) is often reclaimable.

• Missed claims = direct margin erosion.

• For small hotels and agents, cash flow impact can be significant.

2. Common Reclaim Scenarios

• Travel agents sending groups abroad (conference packages, incentives, sports events).

• Hotels hosting international events and charging VAT incorrectly or inconsistently.

• Supplier invoices issued with VAT in a foreign jurisdiction.

3. Key Rules and Challenges

• Eligibility depends on jurisdiction (EU vs non-EU rules differ).

• Time limits are strict — often 6 to 12 months for filing claims.

• Correct documentation is essential (original invoices, VAT numbers, proof of business purpose).

4. Practical Steps to Claim VAT

• Keep detailed records of all overseas expenses.

• Use accounting systems that flag VAT-inclusive invoices.

• Consider outsourcing to VAT reclaim specialists for high-value claims.

• Build VAT reclaim checks into monthly reconciliations, not just year-end.

5. Risks of Getting It Wrong

• Double taxation if VAT is paid but not reclaimed.

• Risk of fines if incorrectly claiming where not entitled.

• Negative audit findings for hotels and agencies expanding internationally.

6. Strategic Benefits

• Reclaiming VAT improves cash flow and working capital.

• Demonstrates strong financial controls and helpful for audits and investor confidence.

• Links with broader compliance structures (BOI, USALI, indirect tax reforms).

7. Connection to Antravia Research

• This blog links directly to Antravia’s forthcoming international tax white paper, which examines VAT, transfer pricing, and global compliance in detail.

• Readers can use this blog as a practical starting point, then explore the research for deeper insight.

8. Final Takeaway

• VAT reclaim is good financial strategy to reclaim money.

• Even small claims add up, especially for hotels and agents working across borders.

• The businesses that track and claim VAT properly keep more of what they earn.

VAT Reclaim for Travel Agents and Hotels: How to recover what you’re owed

This blog is a high level summary of VATs for Travel Agents and Hotels - For a more in depth look, please see our paper on tax and international tax

VAT is one of those costs that many travel businesses quietly accept. Travel agents, Hotels and other travel businesses pay it on overseas hotels, conferences, meals and supplier invoices, and it disappears into the expense column. Yet in many cases that VAT can be recovered. For a travel agent organizing group travel or a hotel working with international suppliers, reclaiming VAT is a direct way of improving margins and cash flow.

The challenge is that rules vary from country to country, deadlines are strict, and documentation has to be exact. Many agents and hotels either miss the opportunity entirely or claim incorrectly and risk fines. This blog sets out the essentials of VAT reclaim for travel agents and hotels, highlighting where it applies, how to manage it, and why building the right processes is worth the effort.

What is VAT?

VAT or Value Added Tax, is a consumption tax charged at each stage of the supply chain. It is built into the price of most goods and services in countries that operate VAT (or GST, its equivalent in some regions).

For example:

• A hotel in Paris adds 20% VAT to the room rate.

• A conference centre in Berlin invoices an event organiser with 19% VAT.

• A transport company in Spain charges 21% VAT on coach transfers.

If you are a local business, you charge VAT on sales and reclaim it on purchases through your domestic tax return. But if you are a foreign business, such as a U.S. travel agency running an incentive in Europe, or a small hotel in Asia paying a marketing agency in London, you still pay VAT on those invoices, but you don’t file local VAT returns.

This is where the VAT reclaim process comes in. Many countries allow foreign businesses to apply for refunds of the VAT paid, under strict conditions and with tight deadlines.

Why reclaiming VAT is important

Margins in travel are often thin. A lost VAT refund is money that should never have been an expense in the first place.

• For travel agents: A group incentive trip to Europe may carry tens of thousands in VAT on hotels, venues, and catering. Recovering that VAT could be the difference between breaking even and turning a profit.

• For hotels: Working with foreign suppliers, from professional services to technology platforms, may involves VAT charges that can be reclaimed. For small hotels especially, reclaiming VAT can help offset seasonal dips in cash flow.

Common Reclaim Scenarios

1. Agents running conferences or incentives abroad. Accommodation, venues, catering, and ground transport often attract VAT in the destination country.

2. Hotels using foreign suppliers. Invoices from marketing agencies, consultants, or software providers may include VAT.

3. Supplier invoices with foreign VAT. This is especially common within Europe but applies in other jurisdictions too.

Rules and Challenges

• Jurisdiction matters. The EU allows refund claims under Directive 8 (for EU businesses) and Directive 13 (for non-EU), but reciprocity rules differ. Non-EU countries such as Switzerland, Norway, or the UAE have their own refund schemes, with varying conditions.

• Deadlines are strict. Claims often must be filed within 6–12 months of the period in which the expense was incurred. Miss the window and the VAT is lost.

• Documentation is key. Refunds will only be approved if invoices show the supplier’s VAT number, your business details, and proof of business purpose.

Practical Steps to Claim VAT

• Record at source. Capture VAT details when invoices are received rather than leaving it until year-end.

• Use systems that flag VAT. Even simple accounting tools can identify invoices carrying foreign VAT.

• Establish a routine. Add VAT reclaim checks into your monthly reconciliations. Waiting until the end of the year increases the risk of missing deadlines.

• Consider outsourcing. If you handle high-value international bookings or supplier spend, a VAT reclaim specialist can save time and reduce errors.

What are the risks of ignoring VAT

• Double taxation. Paying VAT without reclaiming inflates your cost base unnecessarily.

• Non-compliance. Incorrect claims or late filings can trigger audits and fines.

• Lost revenue. Once a deadline passes, you cannot reopen the claim.

Strategic benefits

Handled correctly, VAT reclaim is more than housekeeping:

• It improves working capital by reducing outflows.

• It strengthens financial reporting by showing that controls are in place.

• It links directly to broader compliance requirements such as USALI, BOI, and international tax obligations.

Country Rules at a Glance

VAT reclaim rules vary widely across the globe. To help, we have prepared a practical appendix covering key markets, from the EU and UK to Switzerland, Norway, UAE, Canada, Australia, Singapore, and Saudi Arabia.

👉 See Appendix Section

Connection to Antravia Research

This blog is a starting point. Antravia’s research paper on international tax will goes deeper into VAT, transfer pricing, and global compliance frameworks, with real-world case studies. If VAT reclaim is already an issue in your business, the research paper will provide a broader roadmap.

Final Takeaway

Agents and hotels that track and recover VAT properly are protecting their profits. Even small claims add up, and the businesses that ignore them are at a disadvantage.

Contact us for more information on how Antravia can help with your international VAT reclaim!

VAT Reclaim for Travel Agents and Hotels: How to recover what you’re owed

Appendix: where and how you can reclaim vat (quick guide for agents & hotels)

Note - Rules change and some refunds depend on where your business is established. Always check the original guidance before filing.

European Union (all member states)

Businesses established in the EU can reclaim VAT incurred in another EU country through their own national online portal. This is usually referred to as the “EU VAT Refund” or the 8th Directive procedure.

For businesses established outside the EU, many member states allow refunds under the 13th Directive, but reciprocity rules and local conditions vary.

Typical eligible costs include accommodation, venue hire, ground transport, and trade show expenses. Some countries restrict claims for meals and entertainment.

Deadlines are strict. EU businesses must usually submit claims by 30 September of the following year. Non-EU businesses often face an earlier deadline, commonly 30 June, though this varies.

Official guidance: https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-refunds_en

United Kingdom

Non-UK businesses can reclaim UK VAT if they are not UK-registered and meet the conditions of the scheme. UK businesses making claims for foreign VAT must use different procedures.

Eligible costs include business travel, events, and some services, although items such as cars and most entertainment are excluded.

The deadline is generally six months after the end of the 12-month claim period.

How to apply:

• Guidance: https://www.gov.uk/guidance/refunds-of-uk-vat-for-non-uk-businesses-or-eu-vat-for-uk-businesses

• HMRC contact page: https://www.gov.uk/find-hmrc-contacts/vat-overseas-repayments-for-non-uk-businesses

Switzerland (non-EU)

Foreign businesses can reclaim Swiss VAT if they meet the required conditions, such as proving business status and showing that they are not obliged to register for Swiss VAT on those expenses. Some categories are restricted, and the process may require a local fiscal representative.

Official guidance: https://www.estv.admin.ch/estv/en/home/value-added-tax/vat-specialist-information/vat-vatefund-taxfree/vat-refund.html

Norway (non-EU, EEA)

Foreign businesses may apply for a refund of VAT incurred in Norway. Exclusions apply, particularly for food, beverages, and passenger vehicles.

Official guidance: https://www.skatteetaten.no/en/business-and-organisation/vat-and-duties/vat/foreign/refund-of-vat-to-foreign-businesses/

United Arab Emirates

The UAE offers a Business Visitor Refund Scheme for qualifying foreign businesses.

Applications are submitted annually, typically between 1 March and 31 August for the prior year. The tax authority aims to process claims within around 40 working days once documents are received.

Official guidance:

• Overview: https://tax.gov.ae/en/taxes/Vat/refunds/business.visitors.aspx

• Service page: https://tax.gov.ae/en/services/vat.refund.for.visiting.unregistered.foreigner.businesses.aspx

Canada (GST/HST)

Canada does not provide a general GST/HST refund for foreign businesses on ordinary business travel expenses. However, the Foreign Convention and Tour Incentive Program (FCTIP) provides rebates for eligible convention organisers, exhibitors, and in some cases non-resident suppliers of tour packages.

Official guidance:

• FCTIP overview: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/foreign-convention-tour.html

• Eligible tour packages: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/gi-044/tour-packages-what-eligible-tour-package.html

Australia (GST)

Business visitors generally cannot reclaim GST on typical B2B costs such as hotels or venues. Australia’s Tourist Refund Scheme (TRS) applies only to consumers exporting goods in their luggage, not to business services.

Official guidance: https://www.abf.gov.au/entering-and-leaving-australia/tourist-refund-scheme

Singapore (GST)

Business visitors cannot usually reclaim GST on accommodation or services through a business refund scheme. Singapore’s Tourist Refund Scheme (TRS) applies only to tourists buying goods to take out of the country, and excludes services and hotels.

Official guidance:

• TRS for consumers: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/consumers/tourist-refund-scheme

• Customs page: https://customs.gov.sg/individuals/going-through-customs/departure/tourist-refund-scheme/

Saudi Arabia (VAT)

Saudi Arabia has introduced a retail refund scheme for tourist purchases and also operates a non-resident refund scheme for foreign businesses. This scheme is subject to conditions such as reciprocity, documentation, and processing via the ZATCA portal.

Official guidance:

• Non-resident refund scheme overview: https://www.deloitte.com/middle-east/en/services/tax/perspectives/vat-refunds-under-the-non-resident-refund-scheme.html

• ZATCA e-services: https://zatca.gov.sa/en/eServices/Pages/eServices_015.aspx

Quick Filing Tips

• Keep original tax invoices with the supplier’s VAT number and your business details.

• Map each invoice to its purpose or event (e.g., “Europe sales trip – Berlin trade fair”).

• Build monthly checks into your bookkeeping cycle so deadlines are not missed. In most countries, once the deadline passes the VAT is lost permanently.