What documentation do we need to reclaim VAT on a hotel stay?

You need a valid VAT invoice addressed to your business, showing the supplier's VAT registration number and the VAT amount charged separately from the net cost. A booking confirmation, itinerary or card receipt on its own isn't enough, even if it shows the total amount paid.

Can we reclaim VAT on hotels booked through third party sites?

Sometimes, but it depends on how the booking was made. If the intermediary sold the stay under the Tour Operators' Margin Scheme (TOMS), VAT usually isn't itemised and there's nothing separately reclaimable. If the site acted purely as an agent for the hotel, you should still be able to get a proper VAT invoice from the hotel itself. When in doubt, book directly with the hotel or ask the third party site to confirm whether VAT is shown separately before you travel.

How can finance teams automate hotel VAT reclaim?

Expense software can prompt employees to attach a valid VAT invoice at the point of claim rather than a card receipt, read and code the VAT amount automatically, and flag any claim missing the required details before it's approved. This means recoverable VAT is identified as claims come in, rather than being spotted, or missed, at VAT return time.

What should be checked before approving a hotel VAT claim?

Before approving, confirm there's a valid VAT invoice in the business's name, the supplier's VAT registration number is present, the VAT rate and amount are shown separately, the stay was for genuine business purposes, and any personal nights or non business elements have been separated out from the claim.

Can we reclaim VAT on hotels in other countries?

Foreign hotel VAT isn't reclaimed through your UK VAT return, it follows a separate process through the tax authority in the country where the stay took place. Deadlines, minimum claim thresholds and what's eligible all vary by country, and the route for UK businesses changed after Brexit, so it's worth checking the current process for each destination rather than assuming one process covers every country.

What documentation do we need to reclaim VAT on a hotel stay?

You need a valid VAT invoice addressed to your business, showing the supplier's VAT registration number and the VAT amount charged separately from the net cost. A booking confirmation, itinerary or card receipt on its own isn't enough, even if it shows the total amount paid.

Can we reclaim VAT on hotels booked through third party sites?

Sometimes, but it depends on how the booking was made. If the intermediary sold the stay under the Tour Operators' Margin Scheme (TOMS), VAT usually isn't itemised and there's nothing separately reclaimable. If the site acted purely as an agent for the hotel, you should still be able to get a proper VAT invoice from the hotel itself. When in doubt, book directly with the hotel or ask the third party site to confirm whether VAT is shown separately before you travel.

How can finance teams automate hotel VAT reclaim?

Expense software can prompt employees to attach a valid VAT invoice at the point of claim rather than a card receipt, read and code the VAT amount automatically, and flag any claim missing the required details before it's approved. This means recoverable VAT is identified as claims come in, rather than being spotted, or missed, at VAT return time.

What should be checked before approving a hotel VAT claim?

Before approving, confirm there's a valid VAT invoice in the business's name, the supplier's VAT registration number is present, the VAT rate and amount are shown separately, the stay was for genuine business purposes, and any personal nights or non business elements have been separated out from the claim.

Can we reclaim VAT on hotels in other countries?

Foreign hotel VAT isn't reclaimed through your UK VAT return, it follows a separate process through the tax authority in the country where the stay took place. Deadlines, minimum claim thresholds and what's eligible all vary by country, and the route for UK businesses changed after Brexit, so it's worth checking the current process for each destination rather than assuming one process covers every country.

Recovering VAT on hotel bills

7 MIN READ

Updated: July 2026

Key takeaways:

VAT on eligible UK business-travel accommodation is generally recoverable, subject to the normal input tax rules.
Most UK hotel accommodation is currently standard-rated at 20%, although historic invoices may show the temporary COVID-19 rates.
A valid VAT invoice is normally required. A receipt or booking confirmation may not be enough.
TOMS and foreign hotel VAT follow different rules, so confirm who supplied the stay before claiming.

UK businesses can generally reclaim VAT on hotel accommodation booked for genuine business travel, as long as the normal input tax rules are met. What trips most businesses up is the paperwork: HMRC expects a valid VAT invoice with specific details on it, not just a booking confirmation or a card receipt.

Things get more complicated when the invoice is addressed to an employee rather than the company, when a stay mixes personal and business nights, or when the booking runs through an online travel agency operating under the Tour Operators' Margin Scheme (TOMS). This guide walks through what to check on a hotel bill and how to carry an eligible cost from the original booking through to your VAT return.

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What is VAT on hotel bills?

Most UK hotel accommodation is charged at the standard 20% VAT rate. The temporary reduced hospitality rates ended on 31 March 2022, so older invoices may show a different rate depending on the date of supply.

A VAT-registered business can generally reclaim VAT on employee accommodation and reasonable subsistence for a genuine business trip. Recovery may be restricted where a cost has a private element, supports exempt activity or is blocked business entertainment.

Start claiming your money back today.

Can our company recover VAT on UK accommodation?

Usually, yes. A VAT-registered business can generally recover VAT on UK accommodation when the stay has a clear business purpose, the cost supports taxable business activity and the business holds valid evidence for the claim.

VAT is more likely to be recoverable when:

• The accommodation is for an employee travelling away from their normal place of work on genuine business.

• The business paid for the stay directly or reimbursed the employee under its normal expense process.

• A valid VAT invoice supports the amount claimed.

• The cost relates to taxable business activity and has no disallowed private or entertainment element.

VAT may not be recoverable, or may need to be restricted, when:

• The stay is personal, or the business purpose cannot be evidenced.

• The accommodation supports exempt or non-business activity.

• The cost is treated as blocked business entertainment rather than employee travel or subsistence.

• The supplier has not provided separately identifiable VAT, including some TOMS bookings.

For mixed business and personal stays, separate the business nights and any eligible business-related charges from the private portion. Only include the supported business element in the VAT claim.

For related guidance, see Perk’s business expense categories guide and business travel allowance guide.

What counts as a valid VAT invoice?

For a full VAT invoice, check for:

A unique invoice number.
The supplier’s name, address and VAT registration number.
The tax point and invoice date.
The customer’s name and address.
A description and extent of the services supplied.
The net amount, VAT rate, VAT amount and total payable.

For supplies of £250 or less including VAT, a simplified invoice may be acceptable. Where practical, ask the hotel to address the invoice to the business. If it names the employee, retain evidence that the business paid or reimbursed the cost and that the stay was for business.

When would our company not be charged VAT on accommodation?

A hotel or booking document may not show UK VAT in several common situations:

• The accommodation supplier is not VAT registered, so it cannot charge VAT.

• An intermediary sells the stay under the Tour Operators’ Margin Scheme (TOMS). The document may show a total price without separately itemised VAT for the accommodation.

• The accommodation is supplied outside the UK. Any local tax or VAT follows the rules of the country where the property is located, rather than UK VAT rules.

No VAT shown does not automatically mean the invoice is wrong. Confirm who supplied the accommodation and which VAT rules apply before asking for a corrected document or making a claim.

Common reasons hotel VAT claims are rejected

The document is a receipt, itinerary or booking confirmation rather than a VAT invoice.
Required supplier or VAT details are missing.
Personal nights have not been separated from the business portion.
The intermediary used TOMS and did not supply separately reclaimable VAT.
The claim relates to non-business activity, exempt supplies or blocked entertainment.
The VAT was estimated, duplicated or is unsupported by retained records.

Step-by-step: reclaiming VAT on a hotel bill

Collect the invoice. Ask for a VAT invoice at checkout or from the supplier after the stay.
Check the details. Verify the required fields, VAT rate, business purpose and any private element.
Confirm the supplier. Establish whether the hotel supplied the stay directly, an agent acted for it or an intermediary sold in its own name under TOMS.
Record eligible VAT. Enter only the supported recoverable amount and link it to the traveller and trip.
Submit and retain. Include eligible input VAT in the return and generally keep the supporting records for at least six years.

Direct hotel bookings versus OTA and TOMS bookings

Booking route

Typical document

What to check

Direct with hotel

Hotel VAT invoice

VAT may be reclaimable if the stay and invoice meet the normal rules.

OTA acting as agent

Hotel invoice plus any OTA fee invoice

Review the hotel and booking-fee charges separately.

Intermediary using TOMS

Margin-scheme document

The customer will not normally receive separately reclaimable VAT on the full hotel price.

Do not assume every online travel agency booking uses TOMS. The result depends on the contract and who makes the supply. Ask the supplier when the invoice is unclear.

Can I recover VAT charged in other countries?

Foreign hotel VAT cannot be reclaimed through a UK VAT return. A UK business may be able to apply to the relevant country’s tax authority through its local VAT refund process, provided the business and cost meet that country’s rules.

Before making a foreign VAT refund claim, check:

• The filing deadline, which may be earlier than the business expects and varies by country.

• Any minimum claim threshold for an interim or annual application.

• Whether accommodation, meals, entertainment or other travel costs are excluded or only partly recoverable.

• Whether the country accepts claims from UK-established businesses. Some countries require reciprocal arrangements or exclude certain non-established claimants.

Because the process and evidence requirements differ by destination, confirm the current local rules or use a qualified VAT recovery specialist before submitting a material claim.

What about Brexit?

Brexit changed the route many Great Britain businesses use to recover VAT incurred in EU countries. The former Electronic VAT Refund (EVR) portal process no longer applies in the same way, so businesses generally need to follow each country’s non-EU refund procedure and local deadlines. Northern Ireland businesses may follow different rules for some goods-related claims.

Recover more eligible hotel VAT with less manual work

Easily recoverable VAT can get lost when hotel bookings, invoices and expense records sit in different systems. That’s why we’ve built Perk to connect the booking, traveller, invoice and expense record in one workflow, helping finance teams identify eligible VAT earlier without reconstructing the trip from emails, card statements and disconnected tools.

Prompt travellers to attach the hotel VAT invoice to the relevant booking or expense, rather than relying on a card receipt or confirmation email.
Automatically read and code the VAT amount captured on the invoice, reducing manual data entry and the risk of missed tax.
Check the claim against company policy before reimbursement, so personal nights, missing evidence and other exceptions can be resolved earlier.
Surface recoverable VAT for finance teams, making reclaim-ready records easier to review and move into the accounting workflow.

We’ve also built Perk to integrate with existing finance and accounting tools, so teams can improve VAT capture and review without replacing the systems they already use. The result is a more complete capture-to-reclaim process that can help recover eligible hotel VAT, reduce avoidable write-offs and remove the shadow work of chasing documents and correcting preventable errors. Perk supports the operational workflow; the business or its tax adviser remains responsible for the final tax treatment.

See your VAT recovery in action

GOV.UK Sources

Frequently asked questions

: You need a valid VAT invoice addressed to your business, showing the supplier's VAT registration number and the VAT amount charged separately from the net cost. A booking confirmation, itinerary or card receipt on its own isn't enough, even if it shows the total amount paid.
: Sometimes, but it depends on how the booking was made. If the intermediary sold the stay under the Tour Operators' Margin Scheme (TOMS), VAT usually isn't itemised and there's nothing separately reclaimable. If the site acted purely as an agent for the hotel, you should still be able to get a proper VAT invoice from the hotel itself. When in doubt, book directly with the hotel or ask the third party site to confirm whether VAT is shown separately before you travel.
: Expense software can prompt employees to attach a valid VAT invoice at the point of claim rather than a card receipt, read and code the VAT amount automatically, and flag any claim missing the required details before it's approved. This means recoverable VAT is identified as claims come in, rather than being spotted, or missed, at VAT return time.
: Before approving, confirm there's a valid VAT invoice in the business's name, the supplier's VAT registration number is present, the VAT rate and amount are shown separately, the stay was for genuine business purposes, and any personal nights or non business elements have been separated out from the claim.
: Foreign hotel VAT isn't reclaimed through your UK VAT return, it follows a separate process through the tax authority in the country where the stay took place. Deadlines, minimum claim thresholds and what's eligible all vary by country, and the route for UK businesses changed after Brexit, so it's worth checking the current process for each destination rather than assuming one process covers every country.

Disclaimer: This article provides general guidance only and does not constitute tax or legal advice. VAT treatment depends on the facts, the supplier relationship and the business’s circumstances. Check current HMRC guidance and consult a qualified tax adviser before making material VAT reclaim decisions.

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