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23/11/2023

What counts as holiday accommodation?

by David Edmonds

HMRC’s VAT Notice 709/3 entitled 'Hotels and holiday accommodation' explains how supplies by hotels and similar establishments such as motels, guesthouses and B&Bs should be treated for VAT purposes. In addition, the notice covers the VAT treatment of holiday accommodation such as caravans and camping facilities.

Holiday accommodation includes, but is not restricted to:

  • any house
  • flat
  • chalet
  • villa
  • beach hut
  • tent
  • caravan
  • houseboat

Accommodation advertised or held out as suitable for holiday or leisure use is always treated as holiday accommodation. There may be a restriction under which occupation of the property throughout the year is not permitted, but this will not always be the case.

If you supply holiday accommodation, you may need to account for VAT at the standard rate on any charges that you make regardless of the length of occupation or description of the charges. There are a number of exceptions to this including the sale of holiday accommodation and for off-season lettings of more than 28 days.

Source:HM Revenue & Customs| 20-11-2023

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