Technical Visitor Levy guidance for visitor accommodation providers

Visitor Levy is a self-assessed tax for visitor accommodation providers on booked overnight stays in Wales where the principal council has introduced the levy.

A principal council means a council for a county or a county borough in Wales.

Before a levy can be introduced, principal councils must consult with local people and organisations representing tourism and local business on introducing the levy. Then, if they decide to introduce it, they must publish a notice of introduction which will specify the date Visitor Levy will start in their area.

In Wales, principal councils can only introduce Visitor Levy on 1 April or 1 October, starting from 1 April 2027.

The Welsh Revenue Authority (WRA) will collect and manage the levy for principal councils, before remitting the proceeds of levy back to principal councils for them to spend on sustainable tourism development.

Further guidance on the levy will be provided in due course, and will cover areas including appeals and reviews, penalties, completing Visitor Levy return and systems.

Where a principal council has run their consultation and decided to introduce the levy in their area, they will need to publish a notice setting out their decision.

The notice will need to be made on the principal council’s website, and in any other manner the principal council considers appropriate. The notice must set out:

• the decision to introduce the levy in their area
• the date on which the levy will be introduced in their area, which can only be on the 1 April or 1 October in any financial year
• the rates of the levy
• any other information that the council thinks is appropriate to include in the notice

In addition to the above, the notice must be published at least 12 months before the levy is to be introduced in the council’s area. This means the last date for publishing a notice will be:

• 31 March to introduce the levy on 1 April the following year
• 30 September to introduce the levy on 1 October the following year

By exception, a period shorter than 12 months may be agreed between the WRA and principal council.

Visitor accommodation providers will be able to find information about principal councils who have or are consulting, as well as their decision. You can check if a local council charges Visitor Levy in Wales.

Where a principal council decides to introduce the levy, a visitor accommodation provider will need to become familiar with the rules for the levy and may need to adapt some business practices or record keeping ensuring they can comply with the levy.

Visitor accommodation providers will also be able to seek information from the principal council, where they have decided to introduce the levy.

Example of a principal council announcing the levy 

A principal council has carried out a consultation and decided to introduce the levy in their area. On 10 September 2026, the council publishes their notice on their website and includes information on:

• their decision to introduce the levy
• the levy will be introduced on 1 October 2027
• the rates of the levy

As part of introducing Visitor Levy in its local area, a principal council must establish a forum, called a levy partnership forum. This forum will discuss opportunities and issues relating to levy in their council area, as well as provide the principal council with information and advice on how the levy proceeds could be used for the purposes of destination management and improvement in the local area.

The principal council will ultimately be responsible for deciding how levy proceeds should be used to support destination management and improvement in their area. However, they are responsible for considering any information or advice that the levy partnership forum provide in relation to how levy proceeds could be used, or potential changes to the levy.

The levy partnership forum should represent a range of views across tourism and visitor accommodation in the council’s area, and it will be for the principal council to take steps to ensure the forum achieves this. Visitor accommodation providers who operate in an area where the levy is being introduced, or has already been introduced, may seek further information about the partnership forums from their principal council.

Consultations by principal councils  

For information on the rules relating to principal councils and the consultations they must carry out before deciding to introduce, change or abolish the levy, see the guidance published by the Welsh Ministers. 

The principal council will only be able to make changes to the levy if the Welsh Ministers make regulations giving councils who have introduced the levy the ability to change it. For example, by adding an additional amount to the rates of the levy.

If regulations have been made and a principal council wishes to make changes to the levy, they will need to run a consultation and then make a decision. This decision will then need to be set out and published in a notice on the council’s website, and through any other channels they deem appropriate.

The notice will set out:

• the decision it is making in relation to changing the levy
• the date that the levy will change, which can only be on the 1 April or 1 October in any financial year
• what the rates of the levy will be
• any other information that the council thinks is appropriate to include in the notice

The notice must be published at least 6 months before the change is to be introduced in the council’s area.

Subject to future regulations being made, principal councils will not be able to take steps to change the levy within the first 12 months of the levy being introduced in their area.

Should a principal council decide to change levy rate in their area following any future regulations, visitor accommodation providers will be able to respond to consultations and should be made aware through published notifications of any intended changes. The WRA will also provide information for registered visitor accommodation providers in the relevant Visitor Levy area of any changes.

As Visitor Levy is a local tax, principal councils that have introduced the levy can decide in the future to abolish the levy. To do so, principal councils will need run a consultation, ensure they meet their obligations and then make a decision. This decision will then need to be set out and published in a notice on the council’s website, and through any other channels they deem appropriate.

The notice will set out:

• the decision to abolish the levy
• the date that the levy will be abolished in that area, which can only be on the 1 April or 1 October in any financial year
• any other information that the council thinks is appropriate to include in the notice

In addition to the above, the notice must be published at least 12 months before the levy is to be abolished in the council’s area. By exception, a period shorter than 12 months may be agreed between the WRA and principal council.

Transitional provisions apply where a principal council introduced a levy or the levy is changed, such as the rate of the levy changing.

A principal council will publish a notice when they are introducing the levy in their area, including when the levy will be introduced. Any contracts made between visitors and visitor accommodation providers for stays occurring on or after the levy is introduced will not count as overnight stays for the purpose of the levy, if they are made:

• before the principal council publishes their notice, or
• before the date that is 6 months after the date the notice is published

We call this ‘out of scope’ for the purpose of this section of guidance.

This means that after 6 months has passed from the principal council publishing their notice, bookings being made at visitor accommodation for stays that will take place after the levy has been introduced will be within the scope of the levy.

Example of a local council introducing the levy

On 31 March 2026, a local council publishes a notice that they will introduce the levy on 1 April 2027. This means that visitor accommodation providers will need to account for the levy on any stays that start on or after 1 April 2027, but only if they were booked, or contract was varied, on or after 1 October 2026.

This means that on a stay between 10 May and 17 May 2027:

• you will not pay the levy if this stay is booked on 30 September 2026 or earlier, and not changed, but
• you must pay the levy if this stay is booked on 1 October 2026 or later

If an existing contract is varied on or after a date that is 6 months after the date the council decided to introduce the levy, then an overnight stay takes place where:

• one or more persons are added to the booking and become entitled to stay overnight in visitor accommodation
• one or more nights are added to the booking

Visitor Levy will only be calculated on the overnight stays by additional persons or nights added under the contract.

Where the dates of a stay are moved, such as to a week or month later, then that variation of the contract for the overnight stays would be within the scope of the levy. Where dates are moved but there is still overlap between the original booking and new arrangement, it will only be the new nights that are within scope of the levy.

Example of adding more guests to a contract

On 31 March 2026, a local council publishes a notice that they will introduce the levy on 1 April 2027. A visitor accommodation provider with visitor accommodation in that area will need to start preparing and keeping records from 1 October 2026, for overnight stays taking place on or after 1 April 2027.

Mary and John book a stay with a visitor accommodation provider who has a cottage in that area for September 2027. They make their booking in February 2026. As they booked their stay before the principal council published notice to introduce the levy, no overnight stays take place for the purpose of the levy, even though Mary and John will be staying in their cottage after the levy has been introduced.

Later, Mary and John decide to invite their daughter, Alison, to stay with them. They add her to their booking on 1 December 2026. As they have varied the contract after 1 October 2026 and added her to the booking more than six months after the council decided to introduce the levy, the visitor accommodation provider will need to pay for the levy for Alison’s part of the stay after it takes place. There will still be no levy payable for Mary and John’s stays.

Example of adding more nights to a contract

In the same area, Clyde books a stay in a hotel for 2 nights in August 2027. He books in May 2026. This is after the date the council decided to introduce the levy on, but before 6 months has passed from the date of their announcement.

This means that no overnight stays would take place for the purpose of the levy. In March 2027, Clyde adds 3 more nights to his booking. As Clyde has varied the contract after 1 October 2026 and added additional nights to the booking more than six months after the council decided to introduce the levy, the visitor accommodation provider will need to pay for the levy on the 3 additional nights that Clyde has added after the stay takes place. There will still be no levy payable on the original 2 nights.

Example of moving all booking days

In the same area, Reid books a stay in a hotel for 4 nights in December 2027, starting on 1 December 2027. He books his trip in June 2026. This is after the date the council decided to introduce the levy on, but before 6 months has passed from the date of their announcement, so no overnight stays would take place for the purpose of the levy.

In January 2027, Reid contacts the hotel and moves his stay dates so that they begin on 12 December 2027. As Reid has varied his contract by moving his dates after 1 October 2026 and more than six months after the council decided to introduce the levy, the visitor accommodation provider will need to pay for the levy on the 4 nights after Reid stays at the hotel.

Example of moving some booking dates

In the same area, Lorna books a stay in a hotel for 4 nights in December 2027, starting on Monday 6 December and checking out on Friday 10 December. She books her trip in July 2026. This is after the date the council decided to introduce the levy on, but before 6 months has passed from the date of their announcement, so no overnight stays would take place for the purpose of the levy. 

In January 2027, Lorna contacts the hotel and moves her stay dates so that they begin on Tuesday 7 December and she now checks out on Saturday 11 December. The contract has been varied as the dates of the stay have changed.  

As Lorna has varied her contract by moving her arrival date to Tuesday 7 December, and she has done so after 1 October 2026 and more than six months after the council decided to introduce the levy, the visitor accommodation provider will need to account for the levy on the booking.  

In this case, only 1 night is within the scope of the levy; Lorna was originally going to stay on Tuesday, Wednesday and Thursday night, but not Friday night. As she will now also be staying on Friday night, this overnight stay will be within the scope of the levy.  

Where the principal council makes a change to the levy, such as adding an amount to the lower or higher rate of the levy, that change does not apply to an overnight stay in visitor accommodation, if the contract was made before the principal council decided to change the levy.

Principal councils will only be able to make changes to the levy, if the Welsh Ministers give them the ability to do so through additional regulations.

Visitor Levy is payable on overnight stays in visitor accommodation in Wales, in an area where the levy applies. Visitor accommodation is broadly defined, and the guidance below covers different types of accommodation, and whether it is classed as visitor accommodation or not.

Visitor accommodation includes accommodation:

• in a hotel, guesthouse, bed and breakfast or similar accommodation type
• in a youth hostel, bunkhouse or similar accommodation type
• at a holiday park or holiday resort, such as lodges, chalets and cottages

Visitor accommodation includes a pitch or area that is provided for:

• camping
• mobile homes that are not permanently or semi-permanently situated in one place

Where a mobile home is permanently or semi-permanently situated in one place, the pitch or area it sits on is not classed as visitor accommodation. However, the mobile home itself may be classed as visitor accommodation if it is sub-let to visitors on a short-term basis for the purposes of business, leisure travel or educational trips. See guidance on offering short-term visitor accommodation for more detail.

Example of a camping pitch as visitor accommodation

Agatha has a campervan and books a pitch for 10 days at a caravan park. As Agatha has booked a pitch for her campervan, the pitch itself is classed as visitor accommodation because that is the area booked, and her campervan will only be situated on the pitch for a period of 10 days.

Example of a car park as visitor accommodation

Thomas has a caravan and parks it overnight in a car park that has specific permissions to allow mobile homes to park overnight, as long as they pay an overnight fee. As Thomas has parked in an area of the car park provided for his mobile home for an overnight stay, the area is classed as visitor accommodation.

Example of a campervan staying on a camping pitch

Zach is travelling through Wales and books a pitch for his campervan at a caravan park and will stay there for 5 nights. The visitor accommodation provider will be liable to pay the levy for Zach's stay at that pitch.

The visitor accommodation provider will need to register and fulfil their Visitor Levy obligations.

Example of renting seasonal pitches

Flint rents a seasonal pitch at a caravan park each summer, and he is allowed to tow his caravan on and off the site during the season without any restrictions. However, his agreement does entitle him to keep his touring caravan there all season and for him to stay there, if he wants to.

Flint regularly takes his touring caravan to the site and parks it for a few nights and then leaves, taking the caravan with him. As Flint is entitled under his contract with the caravan park operators to stay there all season, the levy will not apply when Flint does stay at the park, even though the pitch would be visitor accommodation. This is because his contract entitles him to stay at the park for more than 31 nights (and they do not need to be consecutive nights for the rule to apply) so there are no overnight stays for Visitor Levy purposes.

Mobile home is defined for Visitor Levy as any:

• motor vehicle designed or adapted for human habitation, and
• structure that is designed or adapted for human habitation which is capable of being moved from one place to another, whether it is moved by being towed or transported on a motor vehicle or trailer does not matter

Therefore, static caravans and other structures still fall within the definition of “mobile home” when considering the Visitor Levy. Caravans, campervans and other moveable homes also fall within the definition of mobile homes.

The term mobile home specifically does not include:

• tents
• railway rolling stock forming part of the railway system
• aeroplanes
• vessels

Vessels mean ships, boats, rafts or other apparatus constructed or adapted for floating on water and designed or adapted for human habitation.

Visitor accommodation includes certain accommodation types that are offered on a short-term basis.

For Visitor Levy, accommodation is offered on a short-term basis to visitors if the visitor accommodation provider offers to provide the accommodation for stays that are 31 nights or less. It does not matter whether the visitor accommodation is permanently or occasionally offered on a short-term basis.

It does not matter if the nights are consecutive or not, the key aspect is that stays are offered for 31 nights or less.

The following types of accommodation will be visitor accommodation if they are offered on a short-term basis and for the purposes of business or leisure travel or educational trips:

• accommodation in a mobile home, vessel or other vehicle that is permanently or semi-permanently in one place
• self-catering accommodation
• any other kind of accommodation, that does not fall into any categories above

For mobile homes, these circumstances will most often apply to static structures that remain in a fixed location for substantial periods and are more likely to be connected to running services or may have additional anchor features such as decking or balconies. Whilst these structures are technically capable of being moved, they rarely will be.

Example of a static caravan as visitor accommodation

Elliot books a holiday in Wales and contracts to stay in a static caravan. The caravan can be booked for trips up to 25 nights only and is made available most of the year for visitors travelling for leisure or business purposes. The static caravan is the visitor accommodation in this scenario. It is permanently situated in one place, and it is offered on a short-term basis for leisure or business use.

Example of a houseboat as visitor accommodation

Ash books to stay in a houseboat that is permanently anchored in one location. The houseboat can be booked for a maximum of 4 weeks and is made available during spring and summer for leisure guests. The houseboat is the visitor accommodation in this scenario, as it is permanently situated in one place and it is offered on a short-term basis for leisure.

Example of letting a static caravan

Owain owns a static caravan which sits on a pitch all year and is connected to services. Whilst it is still technically movable, it will be visitor accommodation if Owain offers it to third parties on a short-term basis i.e. it is advertised or marketed as available for stays of 31 nights or less (whether or not those nights are consecutive).  

Where Owain uses the caravan solely for himself and his family members, it would not be classed as visitor accommodation as Owain would not be a visitor accommodation provider and there is no contract between him and his family members for when they stay. 

Example of subletting a caravan on a residential caravan park

Austin lives on a residential caravan park. He pays an annual fee to the park operator and lives in his caravan for 11 months of the year. The caravan is his main residence. This will not be classed as visitor accommodation for the levy because Austin lives in the caravan for most of the year and he does not offer it to others for stays on a short-term basis.

However, if Austin sub-lets the caravan to visitors for stays of 31 nights or less for business, leisure or educational trips, the caravan would be classed as visitor accommodation. In this situation, Austin would be the visitor accommodation provider and would need to meet his levy obligations.

Example of a caravan park as a short-term let

Julia runs a caravan park which has 12 static caravans. Julia takes bookings for each of the caravans for stays of 31 nights or less for business and leisure trips. Whilst the caravans are permanently in one place, they are classed as visitor accommodation because they are being offered to visitors on a short-term basis.

If Julia was to only take bookings for her static caravans for stays of more than 31 nights, the levy would not apply to those bookings.

Mobile homes, which include static caravans and similar, that are permanently or semi-permanently situated in one place can themselves be classed as visitor accommodation if they are sub-let on a short-term basis by a visitor accommodation provider.

Where the owner of a mobile home plans to sub-let the mobile home to other visitors, then the levy will apply as long as:

• the mobile home is offered on a short-term basis, which means 31 nights or less (which do not need to be consecutive), and
• the stays are for business, leisure travel or educational trips 

Example of a semi-permanent caravan

Horace pays for a seasonal pitch at a caravan park. He parks his own touring caravan there for 9 months of the year and connects it to the site services. As the caravan is semi-permanently at the caravan park, the pitch it sits on is not classed as visitor accommodation. When Horace stays in his caravan, the levy will not apply.

Horace considers sub-letting the caravan to raise additional income for himself. If Horace does enter into agreements with leisure travellers to sub-let the caravan for stays of 31 nights or less during that 9-month period, then the caravan will be classed as visitor accommodation. In this case, Horace is the visitor accommodation provider and will need to register and meet his levy obligations.

Example of privately owned caravans

Tanya runs a caravan park. On the park there are 8 static caravans which she owns, and then 6 other static caravans which are privately owned. Those private owners pay an annual fee to Tanya for their caravan pitches.

Tanya allows short term stays in the caravans she owns, with a maximum stay of 21 nights. She is a visitor accommodation provider and will need to fulfil her registration and levy obligations in respect of her static caravans.

The privately owned static caravans which are permanently at the park are not within the scope of the levy, unless they are sub-let on a short-term basis for business, leisure or educational trips. If a private caravan is sub-let, the visitor accommodation provider responsible for that caravan will need to ensure they meet their registration and levy requirements.

Example of a caravan parked on a seasonal pitch

Gilly has a touring caravan and she pays a fee for a dedicated seasonal pitch at a caravan park. As the caravan is parked there throughout the season, the pitch is not classed as visitor accommodation and the levy does not apply when Gilly is using her caravan.

Gilly allows family members to sometimes use the caravan over the season while she is away. As Gilly is not a visitor accommodation provider and not entering into contracts with her family to allow overnight stays, the levy does not apply.

Gypsy and Traveller site

Accommodation that is on a Gypsy and Traveller site will not be classed as visitor accommodation for Visitor Levy. A Gypsy and Traveller site means land that is wholly or mainly used to park mobile homes that provide accommodation for:

• people of a nomadic habit of life, regardless of their race or origin, and
• any other people with a cultural tradition of nomadism or of living in a mobile home

People of a nomadic habit of life, would include:

• people who have ceased to travel temporarily or permanently due to their own, their family’s or dependents educational needs or old age, and
• members of an organised group or travelling show people or circus people, whether or not they are travelling together

Mobile homes, vessels or other vehicles

Accommodation in mobile homes, vessels or other vehicles only counts as visitor accommodation in its own right where it is permanently or semi-permanently situated in one place and offered, whether all the time or occasionally, on a short-term basis for business, leisure travel or educational trips.

A pitch or area for a mobile home will only count as visitor accommodation where it is provided for a mobile home that is not permanently or semi-permanently situated in one place.

Example of living in a static caravan

Polly lives in a static caravan on a residential caravan park as her main residence. She pays a monthly pitch fee and is entitled to live in the caravan all year round. The caravan is not visitor accommodation because although it is permanently situated in one place, she does not offer it to rent for short term business, leisure travel or educational trips as it is her home.

The pitch on which the caravan stands is also not visitor accommodation as it is provided for a mobile home that is permanently situated in one place.

Visitor Levy is a self-assessed tax. It is the responsibility of the visitor accommodation provider to account for and comply with the levy.

A person will be a visitor accommodation provider, if in the course of trade or business that person:

• provides, or offers to provide, visitor accommodation at premises in Wales, and
• occupies the premises where visitor accommodation is provided

A person provides visitor accommodation if they enter into a contract under which, or in consequence of which, one or more people are allowed to stay in the visitor accommodation at premises in Wales for at least one night.

The contract between the visitor accommodation provider and the visitor or visitors is key in Visitor Levy and determining how much levy is payable on a stay.

Example of running a bed and breakfast

Joan runs a bed and breakfast and owns the premises she runs her business from. She enters into contracts with guests for them to stay overnight at her bed and breakfast, which is classed as visitor accommodation. Joan is a visitor accommodation provider.

A person offers to provide visitor accommodation if they are willing to enter into agreements with someone and allow them to stay at least one night in their premises in Wales and includes making others aware that their accommodation is available for stays. Agreements would include those made through online marketplaces, verbal agreements and bookings through other channels.

If a person is marketing or advertising their premises, whether it is on a website, social media, other online platform, in brochures, on shop noticeboards or elsewhere, and willing to enter into agreements for stays at their premises then they will be offering to provide visitor accommodation.

If a person is willing to accept future bookings, they too are offering to provide visitor accommodation.

Example of offering to provide visitor accommodation in a spare room

Liam offers his spare room out on social media over busy holiday periods. As he markets his spare room on the internet, he meets test of offering to provide visitor accommodation.  

An occupier of the premises will normally be a person who has control over the premises and how they are used, such as the running of the visitor accommodation business. They may also be responsible for complying with legal requirements relating to the premises and keeping it in good condition. It’s likely that an occupier will also receive profits from providing visitor accommodation at the premises.

An occupier might be, for example, a legal owner of the premises, a tenant under a lease, or a person with a right to occupy the premises under a licence to occupy.

An agent or management company who act on behalf of the visitor accommodation provider is unlikely to be an occupier of the premises.

Example of an occupier of a bed and breakfast

Mr Jones owns a Bed and Breakfast in South Wales and regularly has guests staying at his premises; his income comes from this business. He is the occupier of the bed and breakfast, enters into contracts with visitors allowing them to stay overnight and therefore he is a visitor accommodation provider.

Example of a spare rented room offered as visitor accommodation

Margaret rents a flat in Cardiff. With permission from her landlord, she advertises her spare room for overnight stays for the purpose of leisure travel most weekends. She does this to add to her income. Margaret is the occupier of the flat and is offering to provide visitor accommodation, so she is a visitor accommodation provider.

For Visitor Levy, the meaning of an overnight stay is key in determining the total amount of levy payable.

An overnight stay takes place where:

• one or more people are entitled, under a contract, to reside in or at visitor accommodation for one or more nights in an area where the levy applies
• the accommodation is provided to those people in the course of trade or business being carried on by the visitor accommodation provider
• the accommodation is not the sole or main residence of any of those people, and
• any of those people enter the accommodation as they are entitled to under the contract

For the purposes of Visitor Levy, “night” means a period that starts on one day and ends on the next day.

The visitor accommodation provider, in respect of an overnight stay in visitor accommodation, is the visitor accommodation provider that:

• provides the accommodation in or at which the stay takes place, and
• is an occupier of the premises at which that accommodation is provided

A key part of Visitor Levy, and for contracts between visitors and visitor accommodation providers, is the entitlement it creates for a visitor to reside in or at visitor accommodation.

The contract must entitle one or more people to stay for one or more nights in or at the visitor accommodation.

Contracts would usually be formed at the point a booking is confirmed, whether that is through a booking platform, over the phone, through an online marketplace or directly with the visitor accommodation provider.

Contracts, and how they are entered into, can be wide-ranging. For Visitor Levy, the format of the contract is not important, only that a contract exists. Visitor accommodation providers, as part of their business and record keeping requirements, must keep records, such as copies of contracts, booking confirmations or any other supporting documents, that will help them determine the total levy payable under the contract, and to demonstrate that the correct tax has been paid to WRA.

For the purposes of Visitor Levy, “contract” does not include:

• a contract of service
• a contract of apprenticeship, or
• a contract for services, under which a person entitled to reside in or at the visitor accommodation provides services to the visitor accommodation provider

Example of a services contract

Dafydd runs a cottage in a leviable area and needs some repair work. Dafydd has a builder carry out the work and he stays at the premises whilst they carry out repairs. The contract for service with the builder allows him to stay at the accommodation whilst they are carrying out repair works. Therefore, this contract would not count as a contract and no levy arises.

Example of an apprenticeship contract

Where a person who is employed by the visitor accommodation provider, or an apprentice of the visitor accommodation provider stays overnight at the visitor accommodation provider’s visitor accommodation, and is doing so under their contract of employment or apprenticeship with the visitor accommodation provider, that stay will not count as an overnight stay for levy purposes.

Amy is a hospitality apprentice, and stays, for work purposes, at the premises of a visitor accommodation provider in relation to her apprenticeship. Under her contract for apprenticeship with the visitor accommodation provider, Amy is allowed to stay overnight at the visitor accommodation, which means Amy’s contract for apprenticeship does not count as a contract for Visitor Levy purposes and no levy arises on her overnight stays.

Where a teacher is accompanying students and is staying at visitor accommodation that is not owned by the school, then the contract that entitles them to reside overnight at the accommodation for the trip would be within the scope of the levy.

Example of paying the levy on a teacher’s stay

A school books a trip at a visitor accommodation premises, and the visitor accommodation provider allows teachers accompanying students to stay for free. The contract for the overnight stay by those attending the school trip includes all the students and teachers. It does not matter that the teachers are allowed to stay for free, and the overnight stays by the teachers count when determining the total amount of levy payable for the school trip. This is because the teachers are entitled to stay overnight at the visitor accommodation under the contract.

Where more than one person is entitled under a contract to reside at visitor accommodation, the overnight stay can take place even if only one person entitled under that contract takes entry into the accommodation.

For example, Jordan and Fred book to stay in a yurt in an area where the levy applies, and the contract formed with the visitor accommodation provider entitles them to stay overnight at the premises. At the last minute, Jordan is called away for work and cannot join Fred. The contract remains unchanged, so when Fred checks in at the visitor accommodation, enters the yurt and stays there, the overnight stay takes place as he has exercised the entitlement under the contract.

There are a number of reasons why a stay may not be classed as an overnight stay for Visitor Levy purposes, and so no liability arises on these types of stay.

Staying for more than 31 nights

An overnight stay does not take place in visitor accommodation if:

• the contract entitles one or more particular individuals to stay in or at visitor accommodation, whether or not they are accompanied by any other person
• every particular individual is entitled under the contract to stay there for more than 31 nights, whether or not those nights are consecutive, and
• every particular individual is entitled under the contract to stay there on every night that the contract provides for

The 32 overnight stays do not need to be taken in any set period, and the nights do not need to be consecutive, however the requirement for there to be one single contract for the particular individual or individuals still applies.

Example of a guest staying for 40 nights

Kari books a room in a hotel for 40 nights, the contract that entitles her to stay at the hotel entitles her to stay every night in the hotel. As Kari has booked for more than 31 nights, this trip is outside the scope of the levy, and the 40 nights do not count as overnight stays.  

Example of booking 60 nights under 1 contract

Lloyd travels for work frequently and directly books with a self-catering provider so that he has 12 trips over the next 18 months planned out, each for 5 nights. He enters into one contract with the visitor accommodation provider, and the contract that entitles him to stay at the accommodation entitles him to stay every night in the accommodation for 5 nights on each of the 12 trips. As Lloyd has booked a total of 60 nights, which is more than 31 nights, these trips which are governed by one single contract are outside the scope of the levy and the 60 nights do not count as overnight stays.

Other cases where an overnight stay does not take place 

Overnight stays do not take place where the accommodation:

• is arranged for a person by a principal council, or the accommodation is provided on behalf of the council, under Part 2 of the Housing (Wales) Act 2014, which relates to homelessness
• is provided under section 4 or Part 6 of the Immigration and Asylum Act 1999
• is provided on behalf of the Secretary of State in connection with a requirement imposed under section 3(6) of the Bail Act 1976
• is provided under Part 1 of the Offender Management Act 2007 for probation purposes
• relates to facilities provided under paragraph 9 of Schedule 10 to the Immigration Act 2016 for the accommodation of a person at an address specified in an immigration bail conditions

As part of record keeping requirements, visitor accommodation providers should keep records relating to stays where the levy does not apply. This will help them demonstrate that the total levy they pay to WRA is correct, and that their Visitor Levy return is accurate.

The WRA will produce further guidance on these types of stays.

Whilst the levy is calculated based on the number of nights a visitor is entitled to reside at a premises under a contract, the liability for the levy rests with the visitor accommodation provider.

So, if a principal council introduces the levy, it is the visitor accommodation provider who is responsible for paying the levy on an overnight stay to the WRA. Visitor accommodation providers can choose to ‘pass’ the costs of the levy on to visitors, however there is nothing requiring them to do so in legislation. Regardless of this choice, the visitor accommodation provider must pay the levy to WRA for each liable overnight stay at their premises.

A visitor accommodation provider becomes liable to pay the levy on an overnight stay in visitor accommodation when the overnight stay has taken place and the entitlement under the contract to stay at the accommodation ends. Therefore, when a visitor accommodation provider comes to file their Visitor Levy return, they will self-assess the total amount of levy that is payable during that accounting period. This will be based on the number of overnight stays they have had under a contract during that period.

As the WRA will collect and manage Visitor Levy on behalf of all principal councils that introduce the levy, visitor accommodation providers that operate across multiple areas in Wales where the levy applies will only need to file Visitor Levy returns and pay any levy due to the WRA.

For example, Marie stays in a cottage in an area where Visitor Levy applies. She stays there for a week by herself. The liability for Visitor Levy under the contract for Marie’s weeklong stay arises when Marie's entitlement to stay has ceased under the contract, which is generally known as the point of ‘checking out’ of the premises.

Visitor accommodation providers can decide whether they will pass on some or all the cost of the levy on to visitors. In some cases, visitor accommodation providers who use booking platforms or travel agents may have the levy collected for them by the platform or agent.

A visitor accommodation provider who passes the cost of the levy on to visitors may decide when to collect it from visitors. In practice, an amount covering the levy may be collected at:

• the time of booking the visitor accommodation
• when the balance for the trip is paid
• at check-in
• during the booked stay, or
• on check-out of the visitor accommodation

Visitor accommodation providers will need to ensure they comply with existing pricing regulations under the Digital Markets, Competition and Consumers Act 2024 (“DMCCA 2024”).

Visitor accommodation providers will need to be upfront about the total price a customer will pay for their booking, which will include the levy if it is passed on.

Whilst the levy does not need to be separately itemised in these situations, visitor accommodation providers and visitors may find it helpful to do so for transparency.

Further rules apply, and guidance on the DMCAA 2024 can be found at:

• digital markets competition regime guidance, and 
• unfair commercial practices 

To help visitor accommodation providers in complying with Visitor Levy, they may need to:

• update their listings
• check existing pricing rules, so that the visitor knows the total price they are paying to the provider, and
• update terms and conditions of bookings, as well as invoices and receipts to show that the levy is included in the total price, if the cost is being passed on

Visitor accommodation providers may also want to update their websites, advertisements and promotional material, and other channels they use to help inform visitors.

Where the visitor accommodation provider has decided to pass on some or all of the cost of the levy onto the visitor, the visitor accommodation provider still remains liable for the levy arising on that stay, once it has taken place, and is responsible for remitting the amount of levy to the WRA.

If a visitor refuses to pay the levy, then it is a civil matter, and the visitor accommodation provider will need to decide whether they absorb the cost of the levy themselves or cancel the booking.

In the UK, VAT is generally charged at 20% on the price paid for the supply of taxable goods or services, which may include certain taxes, levies and charges.  

Not VAT registered

If you are not VAT-registered and pass on some or all the levy to the visitor by increasing the amount you charge, it will count towards your taxable turnover. Visitor accommodation providers that are not VAT registered will need to be mindful of the VAT threshold set by UK Government and whether they have a future need to register for VAT with HMRC.

Speak to an accountant or HMRC if you have questions about registering for VAT or the VAT rules.

VAT registered

In the case of Visitor Levy, if a VAT registered visitor accommodation provider includes a Visitor Levy in the cost of the overnight accommodation, then this will form part of what is paid under a contract for the supply of accommodation. This portion of Visitor Levy will be subject to the same VAT liability as the accommodation.

VAT will be due on the total amount the visitor pays to the visitor accommodation provider in return for the overnight stay.

If the accommodation provider passes on some or all of Visitor Levy to the visitor by increasing their charge for the overnight stay then the increased price remains liable to VAT, as it will form part of the overall payment from the visitor to the provider. The accommodation provider will account for the VAT on their VAT return submitted to HMRC.

If the accommodation provider keeps their prices the same and absorbs the full cost of the levy themselves, there is no additional VAT liability, because the price charged to the visitor has not changed. VAT will continue to apply as normal on the charge to the customer.

Relief from VAT may be available for certain accommodation types for periods of stay beyond 28 consecutive nights. See VAT Notice 709/3 or contact HMRC for advice.

Individuals or companies who calculate their profit for income or corporation tax purposes using accountancy rules would normally exclude Visitor Levy from the calculation of profits (in the same way that VAT is excluded from that calculation). This treatment is acceptable and means that Visitor Levy has no impact on the amount of taxable profit.

Individuals who use the cash basis may choose to include or exclude the amount of Visitor Levy from the calculation of taxable profit. If they include Visitor Levy, they receive as income, then they will also have to include Visitor Levy they subsequently pay to the WRA as a cost. This should leave them in the same overall position as those who exclude Visitor Levy entirely.

There are two rates of the levy that can apply to an overnight stay in visitor accommodation that take place under a contract and in a principal council area where the levy has been introduced. The overnight stay must be provided in the course of trade or business carried on by the visitor accommodation provider.

The two rates are:

• the lower rate of the levy is 75 pence
• the higher rate is £1.30

The Welsh Ministers may amend the lower rate and the higher rate of the levy in the future.

The lower rate of 75 pence applies to an overnight stay in visitor accommodation that is:

• a pitch or area provided for camping
• a dormitory, shared room or shared area that is normally provided on the basis that may be shared with other people staying there under a different contract

This rate reflects that accommodation is likely to have shared facilities for visitors, such as shared bathrooms, kitchen space and other communal areas.

A person aged under 18 on the first night that they are entitled to stay in or at visitor accommodation where the lower rate of the levy applies, should be disregarded when calculating the amount of levy payable in respect of that contract.

Pitch or area provided for camping

The lower rate of the levy applies to pitches or areas for camping.

The lower rate applies to tent pitches used for camping but does not include pitches or areas provided for mobiles homes, such as caravans and campervans. The higher rate of the levy will apply to pitches or areas provided for motorhomes, or similar accommodation.

Dormitory or other shared room or area

The lower rate also applies to visitor accommodation where the contract is for a bedspace in a shared area or room. This would generally include dormitories, huts, bunkhouses, hostels and bothies.

The key principle is that the booking and contract is for a space where the room or area may be shared with other people who have booked a space under a different contract.

Private rooms that are available in hostels or similar accommodation year-round would not be lower rated as the booking and contract will be for the entire room. As others could not book a space in that private room under a separate contract, the lower rate of the levy cannot apply.

However, where a visitor accommodation premise is normally lower rated, but a club, association or other group book out the entire visitor accommodation, then it will remain lower rated. This is because the visitor accommodation is normally provided on the basis that it is shared between individuals under different contracts.

Example of paying the lower rate levy on dormitory style accommodation

A Mountaineering club has booked an entire hut to stay out over a weekend as part of their hiking trip. The hut is normally booked by individuals needing a bedspace in a shared dormitory style room. As accommodation is normally provided on the basis that it may be shared with other people, the group booking by the Mountaineering club would remain at the lower rate of the levy.

Example of paying a lower rate levy on private bookings

A youth hostel is typically booked by bed space. However, they occasionally allow larger groups to book the entire accommodation for events. As the lower rate of the levy usually applies to youth hostels, it continues to apply where there is an occasional larger, private booking.

The higher rate of £1.30 applies in relation to an overnight stay in all other visitor accommodation.

It most cases, it will be clear where the higher rate of the levy applies, given that the lower rate only applies to two accommodation types, which are tent pitches for camping and shared dormitory style accommodation.

The higher rate of the levy will therefore apply to accommodation, including:

• hotels, bed and breakfasts, guesthouses and similar accommodation
• pitches or areas provided for caravans, motorhomes and campervans
• self-catering accommodation, such as:
  • lodges
  • chalets
  • cottages
  • holiday lets
  • caravan parks
  • shepherd’s huts
  • glamping sites
  • homestays or spare rooms, such as those booked on Airbnb
• temporary accommodation for events, as long as they are not tent pitches for camping

Providing pitches or areas for caravans, motorhomes and campervans

Where a pitch or area is booked and the contract is for a mobile home or similar, the higher rate of the levy will apply. Where the mobile home has a tent annexed to it, or near it, the higher rate will continue to apply as the contract is for the pitch or area on the basis that a mobile home will be stationed.

Self-catering units paying the higher rate levy

The higher rate of the levy will apply where the contract for the overnight stay is in a self-catering premise that is provided by a visitor accommodation provider, such as a glamping pod, shepherds hut, yurt or similar accommodation type. Whilst many of these accommodation types may be based near pitches or areas for tents, the visitor is contracting to stay in a specific accommodation type which is provided by the visitor accommodation provider, rather than at a pitch or area that a visitor can use for their own accommodation. Therefore, the higher rate will apply to overnight stays in these forms of accommodation.

The Welsh Ministers may, by regulations in the future, add, vary or remove a type of visitor accommodation or description of visitor accommodation for the purposes of determining which rate of the levy applies.

Visitor accommodation providers will need to capture sufficient information when it comes to visitors having overnight stays at their visitor accommodation premises to allow them to accurately calculate the amount of levy payable on a stay. This may mean visitor accommodation providers will need to capture additional information to what they currently capture.

For the levy calculation, it is fundamental that the visitor accommodation provider keeps track of the number of people entitled to reside overnight at the visitor accommodation premises under the contract, and that the contract reflects this. Without this, the visitor accommodation provider will not be able to accurately calculate the levy payable on a booking, the contract will not account for the number of overnight visitors, and the levy may need to be calculated at the maximum occupancy of the premises.

Visitor accommodation providers who have premises where both the lower rate and higher rate of the levy could apply will need to ensure they keep sufficient records relating to each of the rates, so that they can accurately calculate their levy position.

Visitor accommodation providers have record keeping obligations they must comply with as part of Visitor Levy, and this includes keeping accurate records to help determine the amount of levy payable and demonstrate that the tax return is correct and complete. Records include both paper or digital records, and supporting documentation such as accounts, books, deeds, contracts, vouchers and receipts.

See TCMA/1140 for rules on how long records will need to be kept.

Where visitor accommodation providers use booking platforms, online travel agents or other platforms as part of their business, those platforms may calculate the levy, as well as collect amounts for the levy, that arises per booking and send the information to the visitor accommodation provider.

Visitor accommodation providers may need to check whether their platform will be adapting for any Visitor Levy in Wales.

The amount of Visitor Levy arising on an overnight stay is based on the number of nights that visitors are entitled to stay under a contract.

Visitor accommodation providers will need to calculate the liability for each overnight stay, with the liability arising when the contract with the visitor ends and they no longer have an entitlement to reside at the premises.

The amount of levy for an overnight stay is calculated by:

• first determining the number of leviable nights, and
• multiplying the total number of leviable nights by the levy rate that applies in relation to the accommodation where the overnight stay takes place

To determine the leviable nights, you must first look at how many people were entitled under the contract to have an overnight stay at the accommodation.

If only one person is staying at accommodation

If there was only one person entitled under the contract to reside overnight in or at the accommodation, then the total number of leviable nights is the same as the number of nights the person was entitled to stay under the contract.

For example, Bert books a room at a hotel for himself and stays for 6 nights. As the contract for the room is for one person, Bert, and he was entitled to stay for 6 nights, the number of leviable nights is 6.

If more than one person is staying at accommodation

If more than one person was entitled under the contract to reside overnight in or at the accommodation, then the total number of leviable nights is determined by:

• calculating the number of nights each person under the contract was entitled to stay overnight, and
• adding the numbers together

For example, Richard and Susan booked to stay in a cottage for 5 nights. To determine the number of leviable nights:

• Richard was entitled to stay for 5 nights
• Susan was entitled to stay for 5 nights
• adding these together, the total leviable nights is 10

A person aged under 18 on the first night that they are entitled to stay in or at visitor accommodation where the lower rate of the levy applies, should be disregarded when calculating the amount of levy payable in respect of that contract.

So, their entitlement to reside is not counted when calculating the amount of levy, or any nights they were entitled to stay do not count as a leviable night.

When someone turns 18 during their stay in or at visitor accommodation where the lower rate of the levy applies, they will continue to be disregarded for the purposes of calculating the amount of levy payable for that contract.

Example of paying the lower rate on adults

Amy has booked a pitch for her tent and will be camping for 7 days in an area where the levy applies. As she is staying in a tent, the lower rate of the levy applies.

To calculate the levy payable for his overnight stay:

1. determine the leviable nights, which is 7
2. multiply the leviable nights by the rate, 7 × £0.75 which is £5.25

The total levy payable in respect of Amy’s stay is £5.25.

Example of calculating the lower rate levy if children are staying at accommodation

A family of 5, comprising 2 adults and 3 children, book a camping trip for 3 nights in an area where the levy applies. The 3 children are all under 18 years old. As they are staying in a tent, the lower rate of the levy applies.

To calculate the levy payable for the overnight stay:

1. determine the leviable nights, which is 6 (this is calculated by adding up the number of nights each parent is entitled to stay overnight, and the children are disregarded for the calculation as they are under 18 years old)
2. multiply the leviable nights by the rate, 6 × £0.75 which is £4.50

The total levy payable in respect of the family’s stay is £4.50.

Example of calculating the higher rate levy if one person is staying

Zachary books to stay in a glamping pod for 4 nights in an area where Visitor Levy applies. The higher rate of the levy applies in relation to glamping pods.

To calculate the levy payable for the overnight stay:

1. determine the leviable nights, which is 4
2. multiply the leviable nights by the rate, 4 × £1.30 which is £5.20

The total levy payable in respect of Andy’s entitlement to stay is £5.20.

Example of calculating the higher rate levy if more than one person is staying

Jeremy, Karen and their son, Gary, book a chalet to stay in for 10 days in an area where Visitor Levy applies. The higher rate of the levy applies in relation to chalets.

To calculate the levy payable for the overnight stay:

1. determine the leviable nights, which is 30 (this is calculated by adding up the number of nights Jeremy, Karen and Gary are each entitled to stay overnight)
2. multiply the leviable nights by the rate, 30 × £1.30 which is £39.00

The total levy payable in respect of Jeremy’s entitlement to stay is £39.00.

Where a contract is made and allows:

• at least one person to stay in or at visitor accommodation to which the higher rate applies, and
• at least one person to stay in or at visitor accommodation to which the lower rate applies

Then the amount of levy payable is calculated by:

1. carrying out the levy calculation in respect of the higher rate visitor accommodation only, then
2. carrying out the levy calculation in respect of the lower rate visitor accommodation only
3. adding these two amounts together

Example of calculating both levy rates on one stay

Penny, Ophelia and Florence book a trip to a holiday park that offers different accommodation types, including lodges and pitches for tents. Whilst they book their visit under one contract, Penny will be pitching a tent on the camping part of the visitor accommodation for 4 nights, while Ophelia and Florence stay in a lodge for 4 nights.

To calculate the levy due we:

• first consider Ophelia and Florence who are staying in visitor accommodation at the higher rate
• the total leviable nights is 8, as each of them is entitled to stay for 4 nights
• the total levy payable in relation to the lodge is 8 × £1.30 which is £10.40
• then consider Penny who is camping in a tent
• as she is the only one staying in the tent, the leviable nights is 4
• the total levy payable in relation to the tent is 4 × £0.75 which is £3.00
• adding £10.40 and £3.00 together, the total levy payable is £13.40

When it comes to completing Visitor Levy return, whether the visitor accommodation provider files on a quarterly or annual basis, they will need to:

• have calculated the levy payable per contract
• add these amounts together to understand the amount they need to self-assess in their return

Example of calculating the total levy you owe

Marge uses her annex for visitor accommodation, let people book it for short term stays. She files her returns on a quarterly basis for Visitor Levy. Over the last quarter, she has had 5 different parties visit for overnight stays, and has calculated the levy payable per contract as:

• booking 1: £15.60
• booking 2: £23.40
• booking 3: £6.50
• booking 4: £33.80
• booking 5: £54.60

Her total levy payable for this quarter is the amounts for each overnight stay added together, which is £133.90.

Where visitors arrive a day or more late to the visitor accommodation premises they have contracted to stay at, the levy payable under the contract will be based on the entitlement under the contract, notwithstanding that the visitors will actually stay for a shorter period of time.

This is because the amount of levy payable is determined by looking at the entitlement under the contract. If visitors turn up late, the entitlement under the contract will not have changed, but they will have lost out on one or more days of their visit.

Where the visitor accommodation provider does vary or amend the contract to reflect the late arrival, then the amount of liability for the levy would need to take into account the updated contract.

Example of how you pay the levy on a late arrival

Nina and her 3 friends are touring Wales. They book a lodge in a leviable area and plan to arrive on a Monday and stay for 7 nights. When they book, they state 4 adults will be staying in the lodge. Bertha and her 3 friends end up getting delayed, and do not show up until Tuesday. They then stay the remainder of the stay at the campsite.

As the entitlement for the contract is for 4 people to stay for 7 nights, even though they arrive a day late, this entitlement does not change. The total levy payable is determined by:

1. calculating the total number of leviable nights which is 28, calculated as 4 people each entitled to stay for 7 nights
2. multiplying the leviable nights by the higher rate of the levy, £28 × £1.30 = £36.40

For the same reasons as late arrivals, where one or more visitors leave the visitor accommodation premises early, the levy payable under the contract will be based on the entitlement under the contract, notwithstanding that the visitors will actually stay for a shorter period of time.

This is because the amount of levy payable is determined by looking at the entitlement under the contract. If visitors leave early, the entitlement under the contract will not have changed, but they will have lost out on one or more days of their visit.

Where the visitor accommodation provider does vary or amend the contract to reflect the late arrival, then the amount of liability for the levy would need to take into account the updated contract.

Example of how you pay the levy on an early departure

Using the same example as above. Nina and her 3 friends are touring Wales. They book a lodge in a leviable area and plan to arrive on a Monday and stay for 7 nights. When they book, they state 4 adults will be staying in the lodge. They arrive on time on Monday and check in, but 2 of Nina’s friend fall ill and leave on Friday night, so they have only stayed 4 nights.

The calculation is the same as above, as the entitlement for the contract is for 4 people to stay 7 nights. Even though 2 of Nina’s friends leave early, their entitlement under the contract does not change. The total levy payable is determined by:

1. calculating the total number of leviable nights which is 28, calculated as 4 people each entitled to stay for 7 nights
2. multiplying the leviable nights by the higher rate of the levy, 28 × £1.30 = £36.40

It is important that visitor accommodation providers capture the number of people entitled under the contract to reside at the visitor accommodation premises overnight. Without this information, the visitor accommodation provider will not be able to calculate the amount of levy payable, and in the absence of detailed booking information, it is likely that full occupancy would be assumed for a booking to help WRA assess liability.

For Visitor Levy, there is no obligation for visitor accommodation providers to monitor visitor numbers that may change over the booking period. The most important part in determining the total levy payable is by looking at what was agreed in the contract which created the entitlement for the visitor or visitors to stay. It is most likely that visitor accommodation providers will use the original booking and contract to calculate the levy payable on a stay, and this would be evidenced through the booking request, contract, booking confirmation and any other records created in relation to that stay that the visitor accommodation provider keeps.

Where there are late arrivals, early departures or other circumstances which mean the original contract no longer accurately reflects the number of visitors staying, or how long they are staying, then the total levy payable will still be determined by the entitlement under the contract.

However, in some cases, visitors and the visitor accommodation provider may vary the contract between them to account for changes in circumstance, such as a shorter visit or number of guests changing. Where a contract is varied, then the total levy payable would be calculated based on the varied contract.

As contract variations would be matter of fact and rely on visitor accommodation provider booking terms and conditions, agreements between parties, notice periods and a range of other variables, it will be for the visitor and visitor accommodation provider to decide if a variation of contract takes place. Where there is no variation in contract, the total levy payable will still be determined by reference to the original contract and entitlement to reside overnight night under it.

If a visitor accommodation provider is VAT registered, then VAT will be due on the total amount the visitor pays to the visitor accommodation provider, including Visitor Levy if the visitor accommodation provider passes this cost on to the visitor.  

Example of applying VAT to Visitor Levy

Dyfed books a 7-night stay at a hotel, which is VAT registered, in a leviable area, so the £1.30 rate of the levy applies. The visitor accommodation provider running the hotel decides to pass the cost of the levy on to visitors, and the room rate, inclusive of VAT, is £150 per night. 

From the table above, the total levy amount payable is still £9.10, and this will need to be included in the hotels self-assessment of the levy submitted to WRA.  

In addition to the Welsh Ministers having the power to change the lower and higher rate of the levy, they may also give principal councils the ability to add an amount to the lower and higher rate of the levy for their area.

Principal councils will only be able to add an amount to the existing rates of the levy if the Welsh Ministers make regulations giving principal councils the power to do so. The regulations:

• set out the amount that be added to the existing levy rates
• may set out whether a principal council can add an amount to the levy that is below the amount set out in the regulations
• may enable a principal council to add an amount, or different amounts, to the levy for only parts of the principal council area
• may specify periods of time, or allow a principal council to specify periods of time, where the added amount may apply

Subject to future regulations being made, principal councils will not be able to take steps to change the levy within the first 12 months of the levy being introduced in their area.

Before the Welsh Ministers make regulations allowing principal councils to add amounts to the lower and higher rates of the levy they must consult:

• every principal council
• every National Park authority for a National Park in Wales
• organisations that represented business that work in Welsh tourism or engaged in activities relating to tourism in Wales
• organisations that promote of facilitate tourism in Wales
• and other persons that the Welsh Ministers consider appropriate to consult

Should a principal council decide to apply an additional amount to the levy rate in their area following any future regulations, they would need to go through a local process of consultation, decision making and notification like that used for introducing a Visitor Levy. Therefore, visitor accommodation providers will be made aware through published notifications of any intended changes. The WRA will also provide information for registered visitor accommodation providers in the relevant Visitor Levy area of any changes.

The WRA will be carrying out more work on refunds and repayments before any levy is introduced. Further guidance will be provided on refunds and repayments, including:

• how claims will be submitted
• any evidence required to accompany a claim
• timing of claims, and the information needed as part of a claim
• examples of where refunds may become due

Visitor Levy only applies on overnight stays. Where a booking has been made for an overnight stay, and that booking is cancelled, no levy will arise. This is because no overnight stay has taken place.

Visitor accommodation providers therefore do not pay the levy on cancelled bookings or on bookings where none of the visitors show up.

Where a visitor accommodation provider has collected an amount for the levy before the overnight stay has taken place, for example at the time the booking was made, then it will be the responsibility of the visitor accommodation provider to refund any levy amounts they collected back to the visitor, whether or not other elements of the booking are partially or non-refundable.

Where the cancellation occurs and no amount covering the levy has been collected, no further action is required in respect of the levy amount.

In some circumstances a person can apply to the WRA for a ‘levy repayment’ of an amount equal to all or part of the levy payable in respect of an overnight stay in visitor accommodation that has taken place. Where an applicant requests a levy repayment from the WRA, it will be for the levy element only, so £0.75 or £1.30 depending on the rate for the visitor accommodation the person stayed in or at.

Health, safety or welfare visitor refunds

A levy repayment may be made where a person stayed overnight in or at visitor accommodation under a contract because they were unable to reside in their sole or main residence due to a risk to their health, safety or welfare.

Homeless visitor refunds

A repayment may be made where a person stayed overnight in or at visitor accommodation under a contract because they were, at the time of the stay homeless (within the meaning of section 55 of the Housing (Wales) Act 2014.

Caring or supporting a person with a disability and visitor refunds

A repayment may be made where a person (Person P):

• stayed overnight in or at visitor accommodation under a contract
• during the stay, Person P accompanied a person (Person A) who was in receipt of a disability benefit at the time of the stay and Person P was providing care, support or assistance to Person A and
• the visitor accommodation Person P stayed at was at the same premises as the person they were caring for

For WRA to be able to make a levy repayment in respect of an overnight stay, an application must be made to WRA for the repayment:

• by the person who, under the contract, provided consideration (such as payment) in respect of the overnight stay, and
• within 90 days of the entitlement under the contract to stay in or at the visitor accommodation premises ending

For example, a person whose entitlement to stay at a visitor accommodation premise on 31 August will need to have made their application by 28 November.

The WRA will consider any application made and will then decide whether the repayment should be made. A repayment may be in part or in full.

Where the WRA are of the view that payment should not be made in respect of every person who stayed overnight under the contract and/or for every night of the stay under the contract, it will pay the applicant the amount WRA considers is the correct amount.

For the purposes of levy repayments, 'disability benefit' means:

• a disability living allowance under section 71 of the Social Security Contributions and Benefits Act 1992 (c. 4) or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)
• a personal independence payment under the Welfare Reform Act 2012 (c. 5) or Part 5 of the Welfare Reform (Northern Ireland) Order 2015 (S.I. 2015/2006 (N.I. 1))
• an attendance allowance under section 64 of the Social Security Contributions and Benefits Act 1992 or section 64 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992
• a constant attendance allowance under section 104 of the Social Security Contributions and Benefits Act 1992 or section 104 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992
• an adult disability payment under the Disability Assistance for Working Age People (Scotland) Regulations 2022 (S.S.I. 2022/54) or the Disability Assistance for Working Age People (Transitional Provisions and Miscellaneous Amendment) (Scotland) Regulations 2022 (S.S.I. 2022/217)
• a child disability payment under the Disability Assistance for Children and Young People (Scotland) Regulations 2021 (S.S.I. 2021/174)
• an armed forces independence payment under article 24A of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 (S.I. 2011/517)
• a constant attendance allowance under:
  • article 14 or 43 of the Personal Injuries (Civilians) Scheme 1983 (S.I. 1983/686)
  • article 8 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 (S.I. 2006/606)
• a mobility supplement under:
  • article 25A or 48A of the Personal Injuries (Civilians) Scheme 1983 (S.I.1983/686)
  • article 20 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 (S.I. 2006/606)

It is the responsibility of the visitor accommodation provider to file their return for Visitor Levy with the WRA.

As Visitor Levy is a self-assessed tax, the return filed by the visitor accommodation provider must contain a self-assessment of the amount of levy payable by the visitor accommodation provider to the WRA for the accounting period. The return will also need to have a declaration by the visitor accommodation provider that the return, and the information contained within the return and any document submitted with the return, is true and complete to the best of their knowledge.

Where a visitor accommodation provider has authorised an agent, accountant or other third party to complete Visitor Levy return on their behalf, the third party will need to certify that the visitor accommodation provider has made a declaration that the return is true and complete to the best of the visitor accommodation providers knowledge.

Visitor accommodation providers will need to pay to the WRA the amount of levy that has been self-assessed in Visitor Levy return on or before the filing date.

The filing date will depend on whether a visitor accommodation provider files their return on an annual basis or quarterly basis.

Visitor Levy returns are filed on a quarterly or annual basis.  

Further guidance will be made available on how to complete a Visitor Levy return in due course.

Visitor accommodation providers may only file on an annual basis if they:

• expect that they will be liable to £1,000 or less of levy for the financial year, and
• were not liable to pay more than £1,000 of levy in the previous financial year

The financial year runs from 1 April to 31 March.

Example of annual levy filing

Claudette is a new visitor accommodation provider. She begins trading in January 2028 and expects that she will be liable for less than £1,000 of levy for the rest of the financial year, which ends on 31 March 2028. As Claudette is a new visitor accommodation provider she has no previous financial year to consider when she decides how she should file and pay her Visitor Levy return. She can therefore file on an annual basis.

A visitor accommodation provider that is eligible to file on an annual basis, can decide to file returns and pay any levy they are liable for to the WRA on a quarterly basis.

Generally, for visitor accommodation providers filing on an annual basis, the financial year is the same as the accounting period. This is 1 April to 31 March in any year.

However, the accounting period may be shorter in the first year of becoming a visitor accommodation provider and commencing leviable operations. A visitor accommodation provider commences leviable operations on the first day they provide or offer to provide visitor accommodation in an area where the levy applies.

The same principal applies where a visitor accommodation provider stopped providing or offering to provide visitor accommodation in an area where the levy applies and then decides to restart their activity. The visitor accommodation provider commences leviable operations on the day they restart providing, or offering to provide, visitor accommodation in that leviable area.

If a principal council decides to introduce the levy in their area from 1 October, the visitor accommodation provider commences leviable operations on the same date, even if they were already providing or offering to provide visitor accommodation in that council’s area before that date.

Where a visitor accommodation provider commences leviable operations, the accounting period begins on the day they began leviable operations and ends with the end of the financial year during which their accounting period started.

Example of the accounting period if you are a new provider

Claudette began offering to provide visitor accommodation on 15 January 2028. Her accounting period runs from 15 January 2028 to 31 March 2028.

Example of the levy starting on 1 October

Hanna has been running a guesthouse since 2024. The principal council in the area of Hanna’s guesthouse has decided that Visitor Levy will start on 1 October 2028. Even though Hanna was already running her guesthouse before the levy started in her area, her first accounting period for annual returns will run from 1 October 2028 until 31 March 2029.

Example of buying an accommodation in a levy council

Norman owns a self-catering accommodation business in a principal council area of Wales where the levy does not apply. He then purchases a bed and breakfast in a principal council area where the levy has already been introduced. For the purposes of Visitor Levy, Norman begins leviable operations on the day he begins offering to provide, or actually provides, visitor accommodation in the bed and breakfast.

The return, and payment of any levy due, must be made on or before the filing date for the return. The filing date for annual returns will be 31 May, following the end of the financial year.

Example of submitting annual returns

Claudette is filing her first annual return for the financial year ending 31 March 2028. She will need to file her Visitor Levy return, and pay the levy she is liable for, to the WRA by 31 May 2028.

Visitor accommodation providers must file on a quarterly basis if they:

• expect that they will be liable to more than £1,000 of levy for the financial year
• were liable to pay more than £1,000 in levy in the previous financial year, or
• have decided to file on a quarterly basis, even though they could file annually

For visitor accommodation providers filing their levy return on a quarterly basis, the accounting period is the calendar quarter. The calendar quarters are 3 months ending with:

• 31 March
• 30 June
• 30 September
• 31 December

However, the accounting period may be shorter in a calendar quarter where a visitor accommodation provider commences leviable operations. A visitor accommodation provider commences leviable operations on the first day they provide or offer to provide visitor accommodation in an area where the levy applies.

Example of quarterly accounting

Cordelia has been running her B&B since 2022. Her local council decides to introduce the levy in her area from 1 April 2029. The date Cordelia commences leviable operations is 1 April 2029. It does not matter that she was providing visitor accommodation at her B&B before 1 April 2029. Her accounting period for her first quarter will run from 1 April 2029 to 30 June 2029.

The same principal applies where a visitor accommodation provider stopped providing or offering to provide visitor accommodation in an area where the levy applies and then decides to restart their activity. The visitor accommodation provider begins leviable operations on the day they restart providing, or offering to provide, visitor accommodation in that leviable area.

For visitor accommodation providers filing on a quarterly basis, the return, and payment of any levy due, must be made on or before the filing date for the return. The filing date for the return is 60 days after the end of the quarter to which the return relates.

• Quarter 1 is 1 April to 30 June, and filing date is 29 August.
• Quarter 2 is 1 July to 30 September, and filing date is 29 November.
• Quarter 3 is 1 October to 31 December, and filing date is 29 February in leap years, or 1 March in non-leap years.
• Quarter 4 is 1 January to 31 March, and filing date is 30 May.

Example of quarterly filing

A new hotel opens in an area where the levy applies on 6 September 2028. The visitor accommodation provider running the hotel will be filing on a quarterly basis and their first accounting period runs from 6 August 2028 to 30 September 2028. They will need to file their levy return for this shorter accounting period, and pay any liability, by 29 November 2028.

Visitor accommodation providers may only change how often they file may only be made at the start of a financial year. However, visitor accommodation providers will not be allowed to change how often they file returns where they have received one or more penalty points for failing to file their levy return on time.

A visitor accommodation provider must file a return for every accounting period where they have been a visitor accommodation provider in an area where Visitor Levy applies. Even where a visitor accommodation provider has no Visitor Levy to pay to the WRA, because they had no overnight stays for that accounting period, they must still file a return with the WRA.

For example, a visitor accommodation provider who files quarterly but is closed for renovations between 26 September and 5 January will still need to file a return for the quarter ending 31 December, with a self-assessment amount of £0 as they had no overnight stays.

Visitor accommodation providers become liable to pay the levy on an overnight stay in visitor accommodation when the overnight stay has taken place and the entitlement under the contract to stay at the accommodation ends.  

Therefore, when a visitor accommodation provider comes to file their Visitor Levy return, they will self-assess the total amount of levy that is payable during that accounting period. This means that only stays that have taken place before the accounting period has ended need to be self-assessed in the corresponding return.  

Where a stay take place that starts in one accounting period and ends in the next accounting period, the visitor accommodation provider will need to include those overnight stays in the accounting period where the stays have ended. 

Example of paying the levy after the stay happens

A visitor accommodation provider, who files on a quarterly basis, has a guest staying from 25 September to 4 October. Liability for the levy only arises once the entitlement under the contract to stay at the accommodation ends, which is 4 October. This means the visitor accommodation provider will include all of the levy for this overnight stay in the quarterly return covering the October to December quarter.  

The visitor accommodation provider should not include any of the September dates in the calculation of how much levy is payable in their July to September tax return. 

If a visitor accommodation provider has visitor accommodation premises that lie across more than one principal council area, then it is treated for Visitor Levy as being situated in the area where the greater part, or greatest parts, of the premises are located.

Where visitor accommodation lies across more than one principal council area and is treated as being in an area where the levy does not apply, the levy will not be chargeable for that accommodation.

A campsite has 7 seven fields of 1 acre each for camping. Of those fields:

• 4 lie in one principal council area where the levy applies (4 acres total)
• 2 lie in the neighbouring council area where the levy does not apply (2 acres total), and
• 1 field sits across the boundary between the councils, with approximately half (0.5 acres) in each area

As the greatest parts of the premises, that being 4.5 acres, lie in the principal council area where the levy applies. The visitor accommodation provider will need to comply with Visitor Levy rules and account for overnight stays happening across all its 7 fields.

Whilst a visitor accommodation provider remains responsible for complying with Visitor Levy and their tax obligations, they may make arrangements with third parties that help meet their obligations.

Specifically, a visitor accommodation provider may enter into arrangements with one or more third parties to:

• collect amounts covering the levy in respect of overnight stays in their visitor accommodation
• make returns, or payments, of the levy to the WRA
• issue repayments of amounts collected covering the levy

Third parties may include online travel agents, booking platforms or other parties involved in the running of the visitor accommodation provider’s trade or business. In some cases, these parties may collection an amount to cover the levy on behalf of visitor accommodation providers and then pass this on to the provider along with other payments in respect of any bookings made through their platform.

Visitor accommodation providers cannot solely rely on third parties to meet their levy obligations, the responsibility for complying with the levy still lies with the visitor accommodation provider.

Partnerships for the levy mean:

• a partnership within the Partnership Act 1890
• a limited partnership registered under the Limited Partnerships Act 1907, or
• a partnership or entity of a similar character formed under the law of a country or territory outside the United Kingdom

For Visitor Levy, where there is an obligation to meet or an action permitted to be carried out by or in relation to persons carrying on business in partnership, it will be the responsibility of all partners to ensure that they fulfil their requirements. Any action required will need to be carried out by, or in relation to, every partner at that specific time.

For example, a partnership comprises two partners from 1 April 2028 to 26 October 2028. A third partner joins the partnership on 27 October 2028. Annual returns are filed by the partnership in respect of their visitor accommodation in a leviable area, so when the annual return is filed, by 31 May 2029, it is the three partners will be jointly responsible for filing the return.

Whilst partners are jointly responsible for meeting the levy obligations, anything required or permitted to be done by them can be carried out by one partner only. Also, if the partnership's principal place of business is in Scotland, a person who is authorised by the partnership may do anything that is required or permitted to be done by every partner.

For Visitor Levy, where there is an obligation to meet, or an action permitted to be carried out by or in relation to persons carrying on business as an unincorporated body, it will be the responsibility of all persons carrying on the business as an unincorporated association to ensure that they fulfil their requirements. Any action required will need to be carried out by, or in relation to, every person who is a managing member of the unincorporated association at that specific time.

Managing members of an unincorporated association are:

• each member of the unincorporated body holding office as president, chair, treasurer, secretary or any similar office
• if there is no such office, each member holding office as a member of a committee by which the affairs of the body are managed
• if there is no such office or committee, each member of the body

Whilst managing members are jointly responsible for meeting the levy obligations, anything required or permitted to be done by them can be carried out by one managing member only.

Relevant business means a business, or part of it, in which a person provides, or offers to provide, visitor accommodation premises in Wales and the person is an occupier of that premises.

Partners in a partnership and managing members of an unincorporated association are jointly and severally liable for payment of Visitor Levy, penalties and any interest to the WRA.

This means that where a liability to pay an amount to the WRA as a result of anything done or omitted to be done by a partnership or an unincorporated association arises, the partners or managing members at the time when the thing is done or omitted to be done will each be liable for the full amount due.

Where a person is a partner or managing member for only part of an accounting period, their personal liability for any levy chargeable in respect of the accounting period will be the proportion of the liability relating to the business of the partnership or unincorporated association that is just and reasonable in the circumstances.

A person who ceases to be a visitor accommodation provider will still need to comply with their Visitor Levy obligations for the accounting period. This includes filing a Visitor Levy return and paying any liability to the WRA by the relevant filing date.

Visitor accommodation providers who close for maintenance, refurbishment or seasonally will still be Visitor accommodation providers, if they continue offering to provide visitor accommodation. For example, the visitor accommodation provider may continue to take bookings for once the refurbishment work has been completed.

Stacey was a visitor accommodation provider and provided visitor accommodation in an area where the levy applies. She stopped trading on the 6 September 2028 and filed on an annual basis. Stacey will still need to file her Visitor Levy return for the year ending 31 March 2029. The filing date for her return will be 31 May 2029, and Stacey will need to pay any levy she is liable for to the WRA by 31 May 2029 too.

Where a former visitor accommodation provider recommences activity and becomes a visitor accommodation provider again, they will still be obligated to fulfil any of their outstanding duties from when they were previously a visitor accommodation provider, as well as fulfilling the obligations arising after they recommence activity.

A person (Person A) may carry on the relevant business of another person (Person B), if Person B has:

• died
• become incapacitated
• become subject to insolvency procedures, such as liquidation, bankruptcy, receivership or administration

Relevant business means a business, or part of it, in the course of which a person provides, or offers to provide, visitor accommodation premises in Wales and the person is an occupier of that premises.

When person A carries on the business of person B, they must notify the WRA within 30 days of them starting to carry on the business that:

• person A is carrying on the business
• the reason person A is carrying the business on
• the date of the event which led to them carrying on the business, such as the date of person A passing away

Once WRA has been notified, we will issue a notice to person A, and person B if appropriate, acknowledging that person A will be treated as if they were person B.

Person A must give a further notice to WRA where:

• person B is no longer incapacitated or insolvency procedures end, or
• person A stops carrying on the business of person B

The notice will need to be given within 30 days of the change in circumstances and include information on the date on which the change in circumstances occurred.

Where WRA is satisfied that there has been a change of circumstances, WRA will no longer treat person A as if they are person B. WRA will issue a notice of their decision to person A, and if appropriate, person B.

Where a principal council has introduced the levy, they will need to keep a separate account to hold the proceeds of Visitor Levy that is paid to them by the WRA.

WRA will pay the proceeds of the levy that it has actually collected each financial year by:

• 30 June in the following financial year, or
• another date that is agreed between the WRA and that principal council

For example, the WRA will pay the levy it has actually collected between 1 April 2029 and 31 March 2030 to principal councils by 30 June 2030, or another date agreed between the WRA and principal councils.

The WRA will incur operational costs and disbursements in connection with its role of collection and management of Visitor Levy.

The WRA will deduct costs it has incurred during the financial year, before paying the proceeds to principal councils. The WRA may also deduct amounts to cover costs it may incur and disbursements that may become payable in relation to that financial year but arising after it has paid the principal council the levy proceeds.

The Tax Collection and Management (Visitor Levy Costs) (Wales) Regulations 2026 cap the amount that the WRA is able to deduct for costs and disbursement at a maximum of 10% of the levy proceeds or a lower percentage if the WRA costs and disbursements, when aggregated for all principal councils, are less than 10% of the total levy proceeds.

Principal councils who have introduced the levy may only use the proceeds of the levy paid to them by the WRA for the purposes of destination management and improvement in the principal council area. Destination management and improvement include:

• mitigating the impact of visitors
• maintaining and promoting the use of the Welsh language 
• promotion and supporting the sustainable economic growth of tourism and other kinds of travel
• providing, maintain and improving infrastructure, facilities and services for use by visitors, whether or not that are also used for local people

The principal council will need to publish a report every financial year it receives levy proceeds from the WRA on the use of the proceeds.

The report must contain information about:

• how much levy was collected for that financial year
• the amount of WRA deductions for costs and disbursements
• how the proceeds have been or will be used, and how that is for the purposes of destination management and improvement in that council’s area

Visitor accommodation providers will be able to view the report on the council's website and through any other manner that the council considers appropriate. It will also be made available to review for free for at least 12 months after it has been published at the offices of the council. The report will be published as soon as reasonably practicable after 30 June in the financial year following the financial year which the levy proceeds and report relate to and must be done by no later than 31 March.

The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 must be reviewed by the end of the 5-year period, beginning 1 April 2027. 

It will be for the Welsh Ministers to carry out the review of the Act, which will include how the legislation has operated and the effect it has had. A report of the review will be published, in any manner the Welsh Ministers consider appropriate. 

Following this review, the Welsh Ministers are obligated to carry out further reviews every 5 years. 

As part of any review taking place, the WRA must assist in carrying out the review if the Welsh Ministers direct.