Guidance

Visitor Levy for accommodation providers: step-by-step guide

In this guide

4. Know how much you pay

There are two rates of Visitor Levy. They apply to overnight stays in visitor accommodation.

Lower levy rate

75 pence per person per night for:

  • shared rooms in hostels, bunkhouses, bothies or dormitories
  • pitches for tents (including the temporary ones for events and festivals)

Higher levy rate

£1.30 per person per night for all other types of accommodation, such as:

  • hotels, bed and breakfasts, and guesthouses
  • self-catering lets, including:
    • lodges
    • chalets
    • cottages
    • holiday lets
    • caravan parks
    • shepherd’s huts
    • glamping sites
    • homestays (like Airbnb)
  • pitches for caravans, motorhomes or campervans
  • temporary accommodation for events (such as glamping pods for festivals)

Can visitors get refunds?

Visitors can apply for a refund from the Welsh Revenue Authority after their stay if they were:

  • staying as a carer looking after a disabled person
  • temporarily homeless during the time of the stay
  • fleeing harm or domestic violence

The Welsh Revenue Authority will publish more guidance about visitor refunds before April 2027.

Stays you will not pay the levy on

You do not pay Visitor Levy for:

  • stays of 32 nights or more from a one single booking
  • someone under 18 years of age who is staying in a tent on a campsite pitch or in a shared room in a hostel, bunkhouse, bothy or dormitory 
  • accommodation provided as temporary housing by a local council
  • cancelled bookings or stays where visitors do not show up

Overnight stays of employees, contractors or apprentices

You do not need to pay the levy on the overnight stays of your employees, contractors or apprentices. But only if they are staying in your accommodation as part of their job. 

For example, your staff servicing your visitor accommodation at the time of the stay. Or your employees staying overnight to attend business meetings or evening events.

Applying VAT

You’ll pay:

  • Visitor Levy to the Welsh Revenue Authority
  • Value Added Tax (VAT) to HMRC

If you're VAT registered

Value Added Tax (VAT) applies to the total amount visitors pay for their stay. This includes Visitor Levy if you decide to pass it on to your visitors.

If you’re a VAT-registered business, you’ll need to account for VAT on the levy and pay it to HM Revenue and Customs (HMRC).  

If you are not VAT registered

VAT will not apply if you are not VAT registered. 

But if you decide to raise your prices to cover the levy cost, the additional income will count towards your taxable turnover for VAT purposes.

You may need to register for VAT if your taxable turnover goes above the VAT threshold. You can get advice on VAT from HMRC or your accountant.

Organisation

Welsh Revenue Authority