Visitor Levy: VAT
2026-06-01 · Treasury · HL496 · Official question
Question
To ask His Majesty's Government what consideration they have given to amending the rate of VAT on accommodation in the context of the proposed overnight visitor levy.
Answer
VAT is a broad-based tax on consumption, with a 20 per cent standard rate applying to most goods and services on the price paid. As such, if accommodation providers increase their prices in response to the levy, VAT will apply to the entirety of the highe...