The provision of hotel and holiday accommodation

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • The provision of hotel and holiday accommodation
  • Types of accommodation that are viewed as hotels and similar accommodation
  • VAT treatment of accommodation
  • Supply of long stay accommodation
  • Catering and other services
  • Wedding packages
  • Accommodation and catering supplied to employees
  • The sale or lease of an entire hotel, etc
  • Supply of other types of accommodation
  • Holiday accommodation
  • Time-share and multi-ownership arrangements
  • Supply of camping and caravan accommodation
  • Deposits, cancellation charges and other fees
  • Isle of Man

This guidance note provides an overview of the main rules regarding the VAT treatment of the provision of hotel and holiday accommodation in the UK.

Types of accommodation that are viewed as hotels and similar accommodation

The following table provides an overview of the types of accommodation that is covered within the scope of this guidance note:

Type of establishmentDescription
Boarding houses, hotels and innsThese are commercial establishments that provide furnished sleeping accommodation. Meals, kitchen facilities and other facilities may also be provided to guests, however it is not necessary for the business to provide meals in order to be treated as a hotel.
B&Bs, motels, guest houses, private residential clubs, halls of residence and hostelsThese businesses provide furnished sleeping accommodation and compete with hotels and similar establishments. Serviced flats are also included in this category as long as they are not available for permanent residential use.

All of the links below are subscription sensitive.

HMRC Notice 709/3 ; Sheppard v C & E Comrs (1977) VTD 481 (subscription sensitive); VATA 1994, Sch 9, Group 1, items 1(d) or (e); De Voil Indirect Tax Service V6.262 (subscription sensitive); 2006/112/EC , Article 135(2); Pilgrims Language Courses Ltd v C & E Comrs [1999] STC 874 (subscription sensitive); Blasi (CJEC

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