What the levy is
The Visitor Levy (Scotland) Act lets councils charge a percentage levy on paid overnight accommodation. Edinburgh has adopted a rate of 5% of the net accommodation charge, charged on the first five consecutive nights of a stay, with charging beginning on 24 July 2026. It applies to hotels, guesthouses, B&Bs, self-catering, short-term lets, hostels and other paid overnight accommodation in the council area.
What is and isn't charged
Only the accommodation portion of what the guest pays is levied. Before you apply the 5%, strip out:
- Cleaning and changeover fees
- Breakfast, dinner and other food or drink
- Parking
- Transport, tours, spa treatments and other add-ons
- Refundable deposits
If your platform reports a single combined payout figure, you need to separate the accommodation element before you calculate. Visitor Levy App's import asks for accommodation and extras as separate columns for exactly this reason.
The five-night cap
The levy is charged on a maximum of five consecutive nights per stay. A ten-night stay is charged on five nights only; nights six to ten are not levied. This is per stay, not per guest and not per quarter.
VAT: the order matters
This is where most calculations go wrong. The correct sequence is:
- Take the accommodation charge and remove VAT to get the net figure (if you're VAT registered and your rates include VAT).
- Apply the 5% levy to that net figure, for the chargeable nights only.
- Charge VAT on the accommodation plus the levy.
Applying the levy to a VAT-inclusive figure overstates what you owe. Charging VAT before the levy understates the guest total. Both are common and both show up in an audit.
Worked examples
Two nights at £150, VAT registered
- Chargeable nights
- 2/2
- Net accommodation
- £250.00
- Levy
- £12.50
- Guest total
- £315.00
Eight nights at £100, VAT registered
- Chargeable nights
- 5/8
- Net accommodation
- £666.67
- Levy
- £20.83
- Guest total
- £825.00
Three nights at £90, not VAT registered
- Chargeable nights
- 3/3
- Net accommodation
- £270.00
- Levy
- £13.50
- Guest total
- £340.20
Try your own figures in the free calculator.
Bookings made before the start date
Where a booking was made before the scheme's start date, no levy is due — even if the stay itself falls after 24 July 2026. Keep the booking date in your records; it's the evidence that supports the exemption. Visitor Levy App applies this automatically when you supply a booked-on date.
Exemptions
The Act provides exemptions and rebates for certain guests, including those receiving disability-related benefits and their companions, and people in specific forms of temporary or emergency accommodation. In practice, guests claim these directly with the council.
You should not be collecting benefit letters, ID or evidence of someone's circumstances — that is sensitive personal data with real risk attached. Visitor Levy App deliberately provides no way to upload or store it. You can flag a booking locally as "guest claimed exempt" for your own reference and nothing more.
Key dates and returns
- 24 July 2026 — charging begins on stays in Edinburgh.
- Quarterly — returns and payment are made per quarter, to the council's published deadline.
- Five years — keep your underlying booking records for the retention period your council requires.
Check the current scheme details on our Edinburgh council page, and see when other areas are expected on the Highland and Glasgow pages.
Visitor Levy App helps you calculate, check and record your visitor levy. It does not file on your behalf. The property owner or operator remains legally responsible for the accuracy of the figures and for submitting the return on time. Always check the figures against your own records before you file.