V16.904 Business travel agents

V16.904 Business travel agents

Information Sheet 06/05, October 2005

This Information Sheet explains the VAT treatment of fees received by travel agents in the business travel sector.

It should be read in conjunction with Notice 709/6 “Travel Agents and Tour Operators” (Part V8) and will be incorporated into a revised edition of the notice in due course.

1 Introduction

1.1 What is this Information Sheet about?

This Information Sheet explains the VAT treatment of fees charged by travel agents to business clients, including commissions received by agents from travel providers etc. It assumes throughout that you are acting as a disclosed agent. It does not cover supplies made under the Tour Operators' Margin Scheme, nor supplies made as sub-agent (supplies by one agent to another).

1.2 Does this Information Sheet cover my supplies?

Yes, if you are a travel agent with business clients and your supplies do not fall within the Tour Operators' Margin Scheme.

2 The nature of the supplies

2.1 What is the nature of my supplies as an agent?

You may provide different services for your clients including arranging transport, accommodation and car hire. Your supplies are treated for VAT purposes as intermediary services. As an agent you may be providing intermediary services both to your business clients who pay you fees and to the providers of transport, accommodation etc who pay you commission. Throughout this Information Sheet we will refer to payments you receive from travel providers etc as “commission” and to charges you make to business clients as “fees”.

2.2 What is the VAT liability of

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