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Accounting for travel agencies

Tour operators and travel agencies operate in an environment with complex regulations and a specific revenue model-featuring advance payments from clients, commission structures, and contracts with external suppliers. Unlike other sectors, every transaction here requires a precise distinction between whether the revenue is from owned services or intermediary activities, which is key for the correct application of VAT law.

Whether it’s a travel agency or an online booking platform, the accounting services must align with the dynamics of sales, the seasonal nature of the business, and the strict reporting requirements.

What distinguishes accounting for travel agencies?

In travel companies, the accounting must reflect both their operations in organizing and selling travel packages, as well as the specific regulatory and tax requirements:

Distinguishing between revenue from tour operator and travel agent activities

– including the correct treatment of advances, commissions, and deposits, depending on whether the agency is selling its own service or acting on behalf of a third party;

Separation of commission revenue and amounts collected on behalf of suppliers

– such as hotels, airlines, or partners from the EU and third countries;

Tax treatment of commissions and travel packages

– including VAT application for taxable services and exemptions for certain international deliveries;

Accounting for seasonality and cash flow forecasting

– essential for financial planning with clear peak and off-peak periods;

Preparing reports requested by the Ministry of Tourism or during licensing controls

– including reports on completed trips and turnover;

Accounting for specific expenses

– business travel, online booking platforms, marketing campaigns, and market commissions;

Currency operations and exchange rate differences

– when working with foreign suppliers, clients, or platforms, especially in cases of prepaid services or payments in different currencies;

Accounting for contributions to guarantee funds

– in accordance with the Tourism Act, based on annual turnover and number of clients.

All of these processes need to be managed with attention to the specific regulatory framework for the travel sector.

Why do travel agencies choose ATP Konsult for their accounting services?

Ivan Georgiev

Manager of "Solicytimo" Ltd.

"ATP Konsult are not just accountants - they are our partner in business risk management. With them, we have built a system to accurately track commissions and payables to partners, which has helped us reduce late payments. With them, we can grow safely and securely."

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