Recoverable and non-recoverable taxes for travel agency
Let's imagine I have a travel agency based in Canada, who sells trips to Greece. In Greece where I do business, there's a VAT sales tax and the tax rate is 24%.
When I sell a trip for $1,000, I charge 15% HST (provincial tax). In other words, I collect $150.00 in HST taxes or a total of $1,150.
In order to be able to organize that trip, I have to rent accommodation and the accommodation costs $500 plus 24% VAT, where I pay 24% VAT, which works out to $120.
My question is this. Is this VAT tax that I pay in Greece recoverable in Canada?