If you're a UK tour operator working with partner travel agents, you may need to issue Net Remit Agent Invoices. In this model, the travel agent collects payment directly from the client, deducts their commission (and any VAT due on that commission), and remits the remaining balance to you.
Safari Portal supports this workflow using the Cost Breakdown section on invoices.
Example
Let's say:
- Total holiday cost: $150,000
- Agent commission: $25,000
- VAT on commission: $0 (or the applicable VAT amount)
Although the total holiday costs $150,000, the partner agent will only pay you $125,000 because they retain their commission before sending payment.
Rather than creating an invoice for the net amount alone, you can show the full financial breakdown directly on the invoice.
How to configure the invoice
- Create the invoice for the net amount you expect to receive from the partner agent.
- Enable the Cost Breakdown section.
- Add line items similar to the following:
Description = Total holiday cost
Amount = $150,000
Agent commission = -$25,000
VAT on commission = (enter the applicable VAT amount if required)
Because Cost Breakdowns now support negative values, the invoice total will automatically calculate to the net amount due.
Note that Cost Breakdowns are not reportable, but the total amount collected from the agent is.
What your partner agent sees
The invoice clearly shows:
- the full holiday value
- the commission retained by the agent
- any VAT applied to that commission
- the final net balance payable to you
This provides a clear audit trail while ensuring the amount due matches the amount the agent is expected to remit.
Example
The example below shows how the Cost Breakdown is configured in Safari Portal and how it appears on the finished invoice.
Safari Portal configuration
How it appears on the invoice
Note: This workflow is commonly used by UK tour operators working under net remit arrangements. As accounting and VAT requirements vary by business and jurisdiction, we recommend confirming your invoicing process with your accountant or tax adviser to ensure it complies with your specific obligations.
UK, net remit, agent invoice, partner agent, commission, VAT, HMRC, cost breakdown, invoice, negative values