Tax advisory for travel agencies, tour operators, and DMCs.
5% tourism levy on hotel room charges — separate from VAT. Applies to hotels, serviced apartments, and resorts. Restaurants and spas within hotels — standard-rated VAT only, no levy.
Bundle of hotel + flights + tours: principal vs agent analysis critical. If agent — VAT on commission only. If principal — VAT on full price, claim input on costs. Margin scheme may apply.
International flights — zero-rated. Domestic flights — standard-rated. Travel agent commission — standard-rated. BSP settlement — VAT on net amount.
Inbound and outbound tour packaging, excursions, and ground handling services.
IATA accredited agents, corporate travel management, and OTA platforms.
Meetings, incentives, conferences, exhibitions — venue hire, catering, and AV services.
Vehicle hire, chauffeur services, and airport transfers — standard-rated supplies.
Navigate the tourism levy, package VAT, and cross-border complexities.
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