Tax and accounting treatment of unique tourism service

Abstract

The specificity of accounting and taxation services in tourism business is the result of the peculiarity of tourism product offered to customers and it consequently must take into consideration two aspects of accounting in tourism and hospitality companies. Firstly, it should be determined which activity is dominant in a tourism and hospitality company. Secondly, it is possible to identify the services of tourism and hospitality companies by complying with the laws and regulations on tax, accounting and tourism. In regard to the above mentioned criterion, all the services of tourism companies can be divided into two major groups: the services of travel intermediaries as well as tourism companies which organize tours by themselves (unique, quasi-unique and non-unique tourism service). Unlike the hospitality business which provides accommodation and meals either individually or as a package, a unique tourism service is always offered within tourism offer, whereas a part of it (unique service) can be provided in addition to the hospitality service too. This paper will clearly show how to provide unique tourism services independently, taking into consideration specific accounting and tax treatment different from situations when the unique tourism service is provided as a part of the hotel or hospitality service.