EU Tax for the Travel Industry

Tax in Europe

Across Europe, travel taxation is dominated by the EU VAT Directive, but each member state enforces it differently. The result is a patchwork of VAT rates, exemptions, and local tourism taxes that affect every tour operator, OTA, and hotel group trading across borders.

The Tour Operator Margin Scheme (TOMS) applies in many EU jurisdictions but with national variations, creating additional complexity for multi-country operators. Meanwhile, Digital Services Taxes (DST) and the DAC7 reporting framework are reshaping how platforms declare income from European consumers.

Hotels face rising local tourist levies, often linked to sustainability and destination funding, while travel businesses must also consider corporate tax exposure when establishing European subsidiaries or representative offices.

In short, the EU system demands both precision and adaptability and understanding how VAT interacts with corporate structures is key to sustainable profitability.

European Tax - EU Focused Blogs

Tax Frameworks in the European Travel Industry: How VAT and Compliance Shape Profitability

Understand how VAT and digital compliance shape profitability across Europe’s travel sector. From the EU Margin Scheme to ViDA reporting, Antravia explains what every agent, operator, and hotel needs to know. Link

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.. Link

Indirect Tax Risks for Travel Agents and OTAs

VAT is more than reclaim rules. Travel agents and OTAs face hidden VAT liabilities when selling packages, earning commissions, or misclassifying contracts. Learn how to protect your margins. Link

EU Digital Services Law: What Travel Agents and Hotels need to know

The EU’s Digital Services Act and new tech taxes could reshape travel. Learn how agents, hotels, and OTAs may face hidden costs, platform risks, and compliance traps.. Link