The vast majority of airlines ceased paying commissions to agents including overide commission. The nett fare regime now prevails. The agents now charge the client a fee which they variously describe as a Ticketing fee, Admin fee, Service charge and some even call it a Management fee. My question is whether this Mark up is Vatable. I am referring to tickets purchased directly from the airline by an IATA Agent and paid for via IATA BSP - not those purchased from a GSA.
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Hello
Hi there,
From what I understand from your OP the travel agent is charging for the service of procuring tickets from an airline on behalf of the client?
From the facts so far they appear to be acting as an "intermediary" which would create a supply for vat purposes on the "management fee" only.
Please see this link for further guidance;
Many thanks,
Dale