VAT recovery is only possible on hotel made within the EU area.

This means that you cannot compare rates purely on face value because a £100 pre-paid rate on Expedia is actually comparable with a £120 rate appearing via your TMC – with the latter £20 of VAT can be reclaimed, making the net cost £100.

Some TMCs may offer you the choice to use a credit account for all of your travel purchases, which they will then consolidate into a single document from which you can recover all of that VAT that you’re eligible for.

For more industry definitions, check out our complimentary traval management glossary guide below which features over 60 of the most commonly used terms.

 

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