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

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

Need more details? See our main Blog as well as our main tax.travel VAT Reclaim portal, if you would like Antravia to help

Summary

Many UK travel agents and hotels pay European VAT on supplier invoices, overseas marketing costs, or business travel, but never claim it back. Since Brexit, UK businesses must use the EU’s 13th Directive refund process rather than the old EU portal, and the result is that most eligible companies simply stop trying.

In reality, EU VAT reclaims remain possible and financially worthwhile, provided you meet the filing deadlines and provide the correct documentation.

This guide from Antravia UK explains when VAT is recoverable, how to apply, and why reclaiming improves cash flow and financial performance.

1. Why EU VAT Reclaim Matters

VAT on overseas expenses, such as hotels, conference venues, professional fees, ground transport, is often reclaimable. If it isn’t claimed, it’s a direct hit to margin.

For a small travel agency or independent hotel, even a few thousand pounds in lost VAT can make a real difference. With EU VAT rates between 17% and 27%, the sums add up quickly.

2. Common Scenarios for UK Agents and Hotels

• Travel agents arranging group travel or conferences in Europe. Hotels, venues, and catering in destinations like France, Spain, or Italy all include VAT that may be refundable.

• Hotels contracting EU suppliers. Marketing agencies, photographers, and consultants often charge VAT that can be reclaimed.

• Event attendance and trade fairs. Exhibiting at ITB Berlin, ILTM Cannes, or FITUR Madrid involves significant VAT on stand hire, logistics, and accommodation.

• Training and partnership meetings. Staff travel within the EU creates reclaimable costs on hotels and local transport.

3. Key Rules and Challenges

Jurisdiction

After Brexit, the UK is treated as a non-EU country for VAT refund purposes.
UK businesses must claim under Directive 13, the EU mechanism for non-EU companies.

This means:

• Claims are filed separately in each EU country where VAT was paid.

• Reciprocity applies: refunds are only available if the UK offers equivalent rights (and it does for most member states).

• Forms and requirements differ across the EU, with language barriers and local nuances.

Deadlines

Most EU countries require claims to be submitted by 30 June or 30 September of the following year. Miss it and the refund is lost permanently.

Documentation

Every invoice must:

• Show the supplier’s VAT number,

• Include your business name and address,

• Clearly describe the service or goods purchased,

• Be supported by proof of payment or business purpose.

Original invoices are still required in many jurisdictions.

4. Practical Steps to Claim VAT

1. Identify eligible spend early.
   Capture all invoices from EU suppliers showing VAT. Tag them in your accounting software.

2. Review and prioritise.
   Focus on higher-value destinations first, such as France, Spain, Germany, Italy, and the Netherlands.

3. Collect documentation.
   Keep originals and proof of payment. Include your UK VAT registration certificate.

4. Prepare and submit claims.
   File under the 13th Directive to each relevant EU tax authority.
   Most claims cover a full calendar year but can be shorter for smaller refunds.

5. Track and reconcile.
   Refunds are paid directly to your business account, usually within 6–9 months.

5. Risks of Ignoring VAT

If EU VAT isn’t reclaimed correctly, businesses face three main risks: lost refunds, where missed VAT becomes a permanent cost; non-compliance, where incorrect or late claims may be rejected or trigger an audit; and weaker cash flow, as unrecovered VAT ties up capital that could otherwise fund marketing, payroll, or seasonal operations.

Small operators often underestimate the cumulative impact as reclaiming even modest VAT amounts can improve seasonal liquidity significantly.

6. Strategic Benefits for UK Travel Businesses

• Improved cash flow – VAT refunds reduce working capital pressure.

• Stronger controls – Demonstrates financial discipline to investors and auditors.

• Better cross-border reporting – Integrates smoothly with accounting and USALI frameworks.

• Competitive advantage – Margins stretch further when tax leakages are plugged.

For hotels, reclaiming VAT also supports profitability during low-occupancy periods.
For agents, it offsets thin commission margins and strengthens year-end results.

7. Country Highlights for UK Claims

For a list popular EU destinations where UK agents and hotels can recover VAT - please go to tax.travel

8. Filing Tips from Antravia UK

• Use a single VAT reclaim spreadsheet to track spend per country and per event.

• Check reciprocity before filing (most EU countries refund to UK businesses).

• Translate invoice descriptions if needed.

• Submit early to avoid postal delays before June or September cut-offs.

• Store digital copies of all documentation as audits can occur up to four years later.

9. How Antravia UK Helps

Antravia UK manages the process from eligibility review to refund payment.

Our services include:

• Multi-country VAT reclaim coordination,

• Documentation and filing support,

• Local representation in France, Spain, and Italy,

• Deadline tracking and refund reconciliation,

• Transparent fees and contingent or blended options.

We handle the complexity so your finance team can focus on operations.

Start your free eligibility check →

Even small claims, filed consistently, add up. The businesses that manage VAT reclaim properly keep more of what they earn.