VAT Reclaim for Travel Agents and Hotels | How to recover what you’re owed
Many travel agents and hotels miss out on reclaiming VAT from foreign trips and supplier invoices. Antravia explains when VAT is recoverable, how to file claims correctly, and why proper VAT management improves cash flow and margins.
TRAVEL & HOSPITALITY FINANCE
9/15/20252 min read
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.
