US Tax for the US Travel Industry

Tax in the United States

The United States remains one of the most complex tax environments for travel businesses. While the federal corporate income tax is relatively straightforward, most of the complexity lies at state level, where sales and use taxes differ dramatically by jurisdiction. Unlike VAT or GST systems elsewhere, U.S. sales tax is imposed at the state or city level and often applies to hotel stays, car rentals, and travel services physically rendered in that location.

Travel agents and operators face specific issues around nexus (the level of business activity that creates a local tax obligation) and reseller certificates, especially when packaging products across multiple states. Hotels, meanwhile, must navigate occupancy taxes, local tourism levies, and state filing variations.

For cross-border operators, the U.S. tax system also involves withholding rules on payments to foreign suppliers and beneficial ownership reporting (BOI) requirements under FinCEN. Understanding these obligations is essential for any travel business trading with or through the United States.

Antravia’s Tax Services for U.S. Travel Agents and Hotels

--- Core Filings and Compliance ---

Business Tax Returns (Forms 1120, 1065)

Navigate corporate or partnership filings with precision. Antravia prepares entity returns for travel agents, DMCs, and hotels, aligning revenue recognition with USALI where relevant and maximising deductions specific to the travel sector. We manage depreciation schedules, QBI deductions, and carryforwards to reduce liability and prevent audit triggers, turning year-end filings into a clear financial roadmap.

Individual Tax Returns (Form 1040)

Your personal and business finances deserve to work together. We integrate your owner income, K-1s, and rental or commission schedules into one coordinated filing, capturing travel-related deductions and setting quarterly estimates that fit your cash-flow cycle.

BOI Reporting & Compliance

Stay current with FinCEN’s Beneficial Ownership rules. We complete your initial filing, submit required updates after ownership or officer changes, and maintain secure records to prevent penalties. Simple, accurate, and compliant.

Payroll Setup & Quarterly Tax Planning

Smooth payroll, accurate withholdings, and reliable estimated payments—planned around your peak and off-season revenue. We handle W-2/W-4 onboarding, quarterly filings, and projections so you can focus on clients, not compliance.

--- Sales and Indirect Tax ---

For more info on this area, please also visit our US Sales Tax page as well as our VAT Reclaim page

Sales Tax Management

End-to-end compliance for travel agents, DMCs, and boutique hotels. We file returns, resolve notices, and monitor state nexus thresholds to prevent penalties and interest. Every booking type, from domestic, multi-state, or OTA, is tracked and reconciled.

Nexus Risk Analysis and Review

A focused review identifying where you must register, what’s taxable, and what you can safely monitor. Delivered as a clear 2-page action summary within five business days.

State Registrations

We register your travel business or hotel in any required states, set up online portals, and confirm filing frequencies so you’re compliant from day one.

Voluntary Disclosure Agreements (VDAs)

If previous sales tax exposure is keeping you awake, we negotiate limited lookbacks and penalty relief through state voluntary disclosure programs, quietly, efficiently, and confidentially.

Hotel-Specific Taxes (Lodging & Occupancy)

Short-stay lodging often triggers local occupancy or tourism taxes in addition to state sales tax. We verify current city and county rates, identify exemptions for extended stays, and clarify who is responsible when OTAs or agents collect payment.

International VAT Reclaims

For more info, refer to our VAT Reclaim page. We recover VAT/GST paid on eligible overseas expenses, from trade fairs, incentive trips, supplier invoices, across the EU, UK, Switzerland, Norway, and UAE. Every claim handled from documentation to submission deadlines, improving margins for global bookings.

--- Tax Planning for Travel & Hospitality ---

Deduction & Expense Planning

From FAM trips and site inspections to meals and mileage, we document deductions that stand up under review and link them with sales-tax data for a full financial picture.

Incentive Trip Tax Planning

Design reward or promotional trips that qualify as deductible marketing expenses while limiting taxable income to participants. We make every incentive both compliant and motivating.

Fixed Assets & Section 179 Expensing

Plan capital upgrades intelligently. Whether refurbishing rooms or investing in booking technology, we balance immediate expensing with long-term depreciation to maximise ROI and minimise future recapture.

State Income Tax Planning & Compliance

For businesses earning in multiple states, we manage apportionment, credits, and filings to minimise liability while keeping every return accurate and timely.

Specialised Credits (Where Eligible)

When your business develops new booking software or process automation, we evaluate eligibility for available credits—only where the facts support a genuine claim.

U.S. Tax - Blogs

Taxes for Travel Agents: The Complete 2025 Guide

Complete 2025 U.S. tax guide for travel agents. Learn how to handle estimated tax payments, self-employment tax, sales tax nexus, and BOI reporting. Reduce penalties, maximize deductions, and stay compliant with expert advice from Antravia.

Travel Advisor Tax Deductions: What you can actually Write Off

Not sure what you can deduct as a travel advisor? This guide breaks down real, legal business expenses, from host fees to FAM trips, and how to stay compliant.

How to File Taxes as a Travel Agent | 2025 Step-by-Step Guide

A practical 2025 guide explaining how travel agents file U.S. taxes, including Schedule C, estimated payments, deductions, and what to report. Link

Can you deduct Destination Trips? What the IRS Really Says

Travel agents and hoteliers often ask if scouting destinations can be deducted as business travel. Learn what the IRS actually allows, including the primary purpose test and documentation rules for international trips.

State Sales Tax and BOI Changes: What 2025 means for U.S. Travel Advisors

Nebraska and Louisiana show how state sales taxes could reshape travel-advisor fees, while new BOI rules ease federal reporting. Here’s what to watch in 2025.

BOI Reporting for Travel Advisors in 2025: Compliance Guide

New Beneficial Ownership Information (BOI) reporting rules apply to U.S. travel advisors and agencies in 2025. Antravia explains who must file, deadlines, and how to stay compliant without risking fines. Link

U.S. Sales Tax for Travel Agents: 2025 Guide to Compliance

Master U.S. sales tax for your travel agency with Antravia’s 2025 guide. Learn nexus, exemptions, and with emphasis on examples of compliance for Florida, California, New York. Link

U.S Sales Tax Rules for International Travel Agents

Selling to U.S. travelers from abroad? Learn when and how U.S. sales tax applies to international travel sellers, and how to stay compliant without overpaying.

U.S. Hotel Taxes: What Travel Agents must tell Clients

U.S. hotels often add local taxes, occupancy charges, and resort fees at check-in. Learn what travel advisors must explain to clients to avoid surprises and protect trust. Link

2025 Tax Deductions every small Hotel owner should know

Small hotel and B&B owners risk losing thousands if they miss key 2025 tax deductions. Learn what you can claim, from renovations to energy upgrades, marketing, and staff training, plus how BOI reporting changes affect compliance. Link