Ref.: CR17-053/42 – 08/05/2017
REPLIES TO THE VAT / INVOICING QUESTIONNAIRE
Do you agree that IATA resolutions do not determine who is liable to provide the invoice to the
corporate traveler?

Yes

No
AU, BG, CZ, IL (Israel), NL, NO, SE
What is the current practice in your country - who will provide the invoice to the corporate
customer?

The Travel Agent will invoice the Traveler in the name and on
behalf of the Airline
AU, BG, NL

The Travel Agent will invoice the Traveler in his own name
CZ, IL, NO

The Airline will invoice the Traveler
NL

Other, please describe the current invoice process
IL, SE
Comments / notes:
BG:
This is not a standard invoice, but a specific document called “protocol”.
NL:
If the air ticket is booked via an agent, then the airline states on their website that the agent
should provide the invoice.
If the traveler books directly with the airline, the latter issue an invoice. This applies to low cost
as well.
NO:
The travel agent is the one issuing document and has to do the settlement to the airline – so
travel agent has to produce an invoice or receipt (if credit card) to the traveler. Invoice can be
produced with the companies heading – if the company is the one to pay in the end – either via
credit card or to agency.
SE:
The travel agent invoices the customer with information on the invoice about the name and VAT
registration number of the airline. This is accepted by the Swedish tax authority.
What is the legal status of the BSP settlement in your country?

It is a VAT compliant invoice
AU (invoice / statement), CZ, NO

It is a statement
AU, BG, CZ, NL, SE

Other
IL
1
Comments / notes:
AU:
-
It is a kind of hybrid situation: The document has all components of a VAT compliant invoice,
however as travel agents have the status of an agent or intermediary, travel agents do treat
this document as a statement – especially in case of business clients. Only in cases, where a
travel agent buys a ticket and adds another travel service (e.g. hotel) and combines this to a
new package, the BSP settlement is treated as invoice.
-
It is a statement as it does not show VAT nor gives the travel agent the possibility to reclaim
VAT in the name of the passenger
CZ : Two responses have been received with different views.
IL:
There is a settlement between IATA and the IRS that although the BSP is issuing the statement
there is no need for the airlines to issue an invoice as well. In case where airlines are paying
commission, the agents send an invoice to the airlines.
NL:
It is a statement and should be a statement, as if the travel agent needs to invoices on behalf of
the airline, as per above. The only thing what could be an “invoice” is that there are certain
commissions which the agents should invoice to the airlines. If so, their statement/invoice
should be an self-billing invoice on behalf of the travel agent
NO:
Yes, as far as I know (the invoice is specified with all taxes/VAT).
If the BSP settlement is an invoice, does this indicate that the Airline actually sells the air
tickets to the Travel Agent and the Travel Agent will become the principal?

Yes
AU (yes and no), IL, NL, NO

No
AU, BG CZ, SE
Comments / notes:
AU:
Yes – in theory, however if the travel agent would be principal,
1. The airline would have to give a rebate and not a commission
2. The travel agent could change the ticket price by adding “hidden” surcharges instead of
transparent pricing ticket-fare / agent fees
3. The airline would not be in the position to collect the payment via credit card directly from the
traveller as the sales price would be a total amount (ticket price + taxes + TA-fees)
According to Austrian law these facts are a very strong indication, that the travel agent is an
intermediary, so the BSP settlement invoice is in fact not the correct document.
No, the BSP settlement just mentions ticket numbers and amounts which are to be paid to BSP,
and includes ADMs and ACMs.
BG:
No - It is clear from the statement that the agent is not the principal and is working on behalf
and for the account of the airline.
CZ:
IATA issues so called ‘agent invoice’ without proper identification of the issuer.
IL:
That’s the opinion of ITTAA and its legal and tax advisors.
NL:
That is how it should work – the agent becomes the principal and should invoice the client in
their own name.
NO:
In a way (the agent is an agent acting on behalf of airline when it comes to schedule changes
and cancellations) BSP is transferring money to airlines on behalf of agent.
SE:
The travel agent is still an intermediary, selling on behalf of the airline.
2
Do your local tax/legal or any other laws / directives provide any guidance on who should
provide an invoice?

Yes
BG, CZ, IL, NO

No
AU, NL, SE
Comments / notes:
AU:
From a legal perspective in case of an intermediary sale both the airline and the intermediary
can issue the invoice.
BG:
By default only the principal is allowed to issue invoice to the customer. Based on article 10.5 of
the Corporate Taxation Law, regarding the acceptable documents for claiming travel expenses,
for international transport also a “protocol” could be issued from the agent acting on behalf of
the airline. The protocol does not include VAT, so for domestic travel local VAT cannot be
reclaimed.
CZ:
Legislation act nbr. 235/2004 Sb. about VAT in valid wording, § 26 - §35a)
IL:
As described above.
NO:
All invoices has to be produced according to Norwegian accounting law.
SE:
No, but in practice the tax authority accepts the way the travel agents invoice their customers.
Do your local tax laws accept an (e)-ticket as an invoice?

Yes
SE

No
AU, BG, CZ, IL, NL, NO
Comments / notes:
AU:
No, but there is one exception, that VAT reclaim is possible only with a copy of the domestic
ticket, which in fact is a paper copy if the e-ticket (we do not mention the VAT amount of a
domestic ticket in the invoice).
BG:
Article 10.5 of the Corporate Taxation Law, regarding the acceptable documents for claiming
travel expenses requires an invoice or protocol and a boarding pass to be filed.
IL:
The agent has to issue an invoice to his client beside the e-ticket.
NL:
A rail ticket is the invoice but an air (e)-ticket does not qualify as an invoice.
NO:
Not an invoice – agent must produce a receipt stating way of payment.
SE:
In the VAT act Chapter 1, § 17.
Is the invoicing process something which is arranged between the Airline and the Travel Agent
directly via the service level agreements?

Yes
IL

No
AU, BG, CZ, NL, NO, SE,
Comments / notes:
IL:
As described above.
NL:
Not something I’m aware off, in the SLA with the airlines the invoicing is not even mentioned.
NO : Via BSP.
3
If the Travel Agent is invoicing on behalf of the Airline, please can you confirm the following:

Is the Travel Agent required to report to the Airline what the Travel Agent actually invoiced
so that the Airline can report this in its VAT return?

Yes

No
AU, BG, CZ (N/A), IL (N/A), NL, NO, SE
Comments / notes:

AU:
No, the airline assumes that the invoice (if there is an invoice at all) is in line with the BSPstatement.
IL:
In Israel there is no VAT on flight tickets.
NL:
If the travel agent invoices on behalf of the airline, the latter should mention the sales in
their VAT returns. In addition, you would expect that airlines would like to know what travel
agents invoice on their behalf plus if it fulfils the invoice requirements.
NO:
The agents report to BSP and BSP to the airlines.
Did the Travel Agent receive any instructions from the Airline how the invoice should look
like and which information should be on the invoice?

Yes

No
AU, BG, CZ (N/A), IL (N/A), NL, NO, SE
Comments / notes:

AU:
No, there are general legal rules, how an invoice should look like – the amounts have to
be taken from BSP settlement (statement) in case the invoice is issued by the
intermediary.
IL:
In Israel there is no VAT on flight tickets.
NO:
In old days when paying directly to airline – not anymore – travel agents have to invoice
according to Norwegian law -that means all documents issued have to be reported in one
way that meaning invoiced/registered.
Are the (foreign) Travelers able to reclaim domestic VAT on domestic air tickets based on
the Travel Agent invoice which is sent on behalf of the Airline via the 8 th / 13th Directive or
their domestic VAT law?

Yes
NO, SE

No
AU, BG, IL (N/A), NL
Comments / notes:
AU:
No, it is not permitted to mention the VAT on the invoice; for VAT reclaim the
traveller/corporate account has to combine the invoice (without VAT) + a copy of the eticket.
IL:
In Israel there is no VAT on flight tickets.
NO:
Yes – VAT is always specified on invoice for domestic tickets according to Norwegian law.
4

If you answered previous question with No, are the (foreign) Travelers able to reclaim
domestic VAT on domestic air tickets based on the Airline ticket/invoice?

Yes
AU, CZ

No
BG, NL
Comments / notes:
AU:
- Yes, corporate customers in combination with the invoice (which does not show VAT amounts)
- Foreign travelers can’t reclaim VAT as the service was provided domestically.

If the Travelers would like to reclaim any domestic VAT, should the invoice be addressed
to the legal entity name of their company?

Yes

No
AU, BG, CZ, NL, NO, SE
Comments / notes:
NO:

Yes, according to Norwegian law the legal entity of reclaiming has to be stated on invoice.
Are there any other laws/rules/guidelines which are applicable in respect to invoicing?

Yes
AU

No
BG, CZ, NL, SE,
Comments / notes:
AU:
§11 UStG (which is the local law concerning VAT rules)
 Are there any other items you like to address?
AU:
Even if the situation seems to be unclear (invoice or not), so far this has never been an
issue with tax authorities in Austria.
CZ:
We do not understand why such a complex agenda of VAT application in air travel is
further complicated with tough ideas about future responsibility of travel agents…
5