Visitor levy for hotels, guesthouses and B&Bs

What actually trips people up

• Breakfast, dinner and other meals are excluded from the levy even when they're bundled into a single room rate and never itemised — set the breakfast value once and we deduct it per guest, per night.
• Standard cleaning, utilities, WiFi and basic amenities stay inside the accommodation charge. Meals, parking, laundry, entertainment and transport come out.
• VAT sequencing matters: the levy is calculated on the net accommodation charge, and VAT is then applied to accommodation plus levy — never the other way round.
• Group and corporate bookings often straddle quarters and the night cap.
• Your front desk needs one number per quarter, with the working attached in case anyone asks.

See it worked through

A single room booked for 2 nights at £150/night, breakfast included in the rate, 2 guests sharing. Breakfast is valued at £10 per guest, per night — and it comes out even though the guest never sees it itemised.

1. Gross rate charged to the guest

   2 nights × £150 = £300.00

2. Breakfast deducted (£10 × 2 guests × 2 nights)

   −£40.00

3. Accommodation charge after breakfast

   £260.00

4. Removed VAT to get the net charge (÷1.2)

   £216.67

5. Levy at 5% on the net accommodation

   £10.83

Set your breakfast value once on the property and every booking has it deducted automatically, per guest per night. Stays that straddle a quarter boundary are also split night by night, not dumped into the quarter they start in.

Questions we get asked

This page is based on the City of Edinburgh Council's official guidance for accommodation providers — read it here.

Go deeper

Other setups

Figures here are worked examples, not advice. We calculate and record — you file, and the property owner or operator stays legally responsible. See our full terms.