Can my client reclaim VAT under the travel agency scheme?

No. That's one of the most important practical consequences of the travel agency scheme. On invoices to which the scheme applies, VAT is not listed separately. The client therefore cannot reclaim VAT on the travel component as input tax.

For business clients who normally reclaim all VAT, this is a net additional cost. Always discuss this proactively at the quote stage, not at the invoice afterwards.

Want to know more about the VAT consequences for the client? Read our full article →

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