Global VAT and GST rules now affect every part of the travel supply chain, from hotel bookings to inbound tour operations and destination events. More than 170 countries operate a consumption-tax system, yet each applies different rules on registration, refund rights, digital reporting, and what counts as a taxable presence. These differences create real financial risk for hotels, travel agents, DMCs, and event organisers working across borders.

This Antravia guide summarises the major non-EU regimes that travel businesses encounter most often, including the UAE’s 5 percent VAT system and upcoming e-invoicing mandate, Japan’s consumption tax and Qualified Invoice System, Australia and New Zealand’s GST frameworks, Canada’s layered GST/HST rules, and Iceland’s VAT treatment of tourism. Each section sets out registration triggers, refund positions for foreign companies, invoicing rules, and common traps for cross-border sellers.

The page also highlights how e-invoicing and structured digital reporting are expanding across the Middle East and Asia-Pacific, and what travel businesses should prepare for when contracting internationally.

Antravia Advisory supports hotels, tour operators, and agencies in more than 30 jurisdictions, helping them understand liability, structure supply chains, review invoices, coordinate VAT and GST registrations, and prepare for upcoming digital-tax changes. For specialist support tailored to your markets, contact us.

Worldwide VAT for Travel Businesses

United Arab Emirates (UAE)

Japan

Australia

New Zealand

South Africa

Canada

United Arab Emirates (UAE) – VAT

Introduced: 2018
Standard Rate: 5%
Authority: Federal Tax Authority (FTA)

The UAE operates a modern VAT framework modelled broadly on European systems, but with local variations relevant to tourism.

Scope for Travel and Hospitality

• Accommodation (hotels, resorts, serviced apartments): taxable at 5% plus local municipality/tourism fees (differ by emirate).

• Hospitality services: F&B, events, banqueting, spa services, and resort fees are all taxable.

• Inbound travel packages: If the consumption occurs inside the UAE, VAT applies even when booked by non-UAE agents.

• Outbound services: Zero-rated if the customer is outside the UAE and the benefit is enjoyed outside the country.

Refunds for Foreign Businesses - See UAE VAT Reclaim

Refunds are available under the UAE Foreign Business Refund Scheme, but the conditions are strict:

• No fixed place of business or establishment in the UAE

• Not registered for VAT locally

• Must be legally established in a country that offers reciprocal refunds

• Must meet invoice and payment requirements

E-Invoicing Mandate (2026–2027)

A significant change for hotels and DMCs:

• Ministerial Decisions 243 & 244 (2025) introduce structured e-invoicing

• Phase 1: Large taxpayers (≥ AED 50m revenue)

• Phase 2: All remaining VAT-registered businesses

• Mandatory XML-based invoice format

• Real-time reporting to accredited platforms

• Hotels must integrate PMS, POS, and accounting systems before go-live

Antravia helps: UAE hotels and DMCs review invoicing systems, prepare for e-invoicing, and optimise refund claims for foreign event organisers.

Japan – Consumption Tax (JCT)

Introduced: 1989
Standard Rate: 10%
Reduced Rate: 8% (food, newspapers)
Authority: National Tax Agency (NTA)

Japan’s consumption tax functions similarly to VAT but has unique registration and invoicing requirements.

Scope for Travel Businesses

• Accommodation, domestic tours, transport, and on-the-ground services are taxable at 10%.

• Foreign suppliers are generally not required to register unless they have a permanent establishment or supply B2B digital services.

• Inbound event expenses (venues, catering, AV, hotels): typically non-recoverable for foreign businesses.

Refund Position

Japan does not offer direct JCT refunds to foreign companies. Refunds are only possible by:

• Using a Japan-based registered intermediary, or

• Structuring contracts so the Japanese entity purchases on behalf of the foreign client.

Qualified Invoice System (2023)

To claim input tax:

• Supplier must have a JCT registration number

• Invoices must list each item with the applicable rate

• Hotels and DMCs must update invoice templates

Antravia helps: firms determine whether JCT applies to their contracting model and assess documentation for any reclaim opportunity.

Australia (GST)

Introduced: 2000
Standard Rate: 10%
Authority: Australian Taxation Office (ATO)

Australia’s GST regime is extensive and particularly relevant for tour operators managing inbound traffic.

Tax Treatment of Travel Services

• Accommodation, domestic tours, car hire, events, and transport consumed in Australia are taxable.

• Exports of services (e.g., selling Australian travel to overseas consumers) may be zero-rated if the service is supplied to a non-resident and used outside Australia.

• Inbound Tour Operators (ITOs) may apply the Margin Scheme for travel packages, but conditions are strict and documentation must be exact.

Registration Rules for Foreign Suppliers

Non-resident businesses must register if:

• They provide taxable supplies connected with Australia, or

• Annual turnover exceeds AUD 75,000 (GST-exclusive).

Refund Rights

Foreign event organisers cannot generally reclaim GST unless registered.
GST on hotel rooms and local services typically becomes a cost unless correctly structured.

E-Invoicing

Australia uses PEPPOL standards. Adoption is optional but expanding; compulsory phases may follow.

Antravia helps: evaluate the benefit of voluntary registration and determine eligibility for GST margin schemes.

New Zealand (GST)

Introduced: 1986
Standard Rate: 15%
Authority: Inland Revenue (IRD)

New Zealand’s GST system is one of the most comprehensive.

Key Points for Travel Businesses

• All domestic services including tours, hotels, and transport attract GST.

• Since 2019, non-resident suppliers of remote services (including OTAs and booking platforms) must register if turnover exceeds NZD 60,000 annually.

• Digital platforms supplying accommodation must apply GST in many cases.

Refund Rights

Foreign businesses generally cannot reclaim GST.
However, inbound tour operators may zero-rate certain services supplied to overseas travel agents if:

• The service is supplied to a non-resident, and

• The recipient is outside NZ at the time of supply.

Correct structuring is essential to avoid double taxation.

Antravia helps: tour operators apply zero-rating correctly and avoid GST leakage.

Canada (GST - HST - QST)

Introduced: 1991
Rates: 5% GST (federal)
Up to 15% HST in participating provinces
Additional QST in Québec

Canada’s system is layered and requires precise analysis of where the service is consumed.

Tax Treatment

• Hotels: GST or HST applies depending on the province.

• Travel agents and DMCs: must determine the “place of supply” rule to identify the correct rate.

• Event organisers: local expenses (hotels, catering, venue hire) carry provincial tax combinations.

Registration for Non-Residents

You may need to register if:

• You sell taxable services to Canadian consumers, or

• You carry on business in Canada (a broad definition).

Refund Options - See VAT Reclaim

Canada offers a unique mechanism:

• Foreign Convention and Tour Incentive Program (FCTIP) — allows refunds of GST/HST on certain accommodation and tour packages for non-resident groups.

Documentation must be perfect, especially for hotel invoices.

Antravia helps: interpret provincial rules, determine if FCTIP applies, and prepare compliant documentation.

South Africa (VAT)

Introduced: 1991
Standard Rate: 15%
Authority: South African Revenue Service (SARS)

South Africa’s VAT system applies broadly across accommodation, tourism, and event services. For foreign travel companies, the key issue is that most local services are treated as fully taxable and non-recoverable, which makes VAT a real cost when organising programmes in the country.

Scope for Travel Businesses

• Accommodation (hotels, safari lodges, guesthouses) is taxed at 15 percent.

• Tours, game drives, transfers, excursions, and local transport are also taxed at 15 percent.

• Event services such as venue hire, catering, AV, and staging are taxed at 15 percent.

• Safari and adventure experiences are taxable unless specifically exempt, which is rare.

For inbound tour operators and DMCs, VAT applies to the full package unless it can be clearly split between taxable and exempt supplies.

Refund Position

South Africa’s VAT refund scheme applies only to goods exported through designated ports, not to services consumed locally. This means:

• Hotel stays, tours, local transport, event costs, and DMC packages are not refundable.

• Corporate incentive trips, conferences, and group programmes incur irrecoverable VAT, which should be priced as a final cost.

• VAT recovery is only possible on physical goods that are exported, a mechanism with little relevance for most travel businesses.

Foreign companies cannot reclaim VAT on local tourism services unless the supply can be structured as an exported service, which is uncommon and tightly restricted.

Antravia helps

We support travel agents, tour operators, and event organisers by modelling the VAT impact on South Africa programmes, reviewing DMC and hotel invoices, and ensuring final pricing reflects the non-recoverable nature of South African VAT on services.

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Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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