The provision of hotel and holiday accommodation

Produced by Tolley
The provision of hotel and holiday accommodation

The following Value Added Tax guidance note Produced 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
  • Hotel rooms provided with catering
  • Wedding packages
  • Accommodation and catering supplied to employees
  • The sale or lease of an entire hotel, etc
  • Supply of other types of accommodation
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

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. This note has not been updated to reflect the temporary reduced rate applicable to hotel and holiday accommodation. See the Hospitality industry ― temporary reduced rate from 15 July 2020 - 31 March 2021 guidance note for full details of the temporary changes.

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.

VAT treatment of accommodation

The provision of the following facilities in a hotel, inn, boarding house or similar establishment are liable to VAT at the standard rate:

  1. sleeping accommodation, including bathrooms, lounges and suites

  2. accommodation used for the supply of catering (see below)

  3. rooms provided with sleeping accommodation

Supply of long stay accommodation

There are special rules in place

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