Being non-VAT-registered does not, by itself, exempt an Edinburgh accommodation provider from Visitor Levy. The council's final scheme includes providers below the VAT threshold. Check whether the stay is chargeable separately from checking your VAT status.
A fictional three-night booking
Assume an eligible three-night Edinburgh stay, with £120 accommodation per night, no extras or cleaning charge, and no VAT or levy included in the price. The host is correctly non-VAT-registered and no exemption applies.
| Calculation | Amount |
|---|---|
| Accommodation: 3 × £120 | £360.00 |
| Edinburgh levy: £360 × 5% | £18.00 |
| Accommodation plus levy | £378.00 |
Do not divide £360 by 1.20 to remove VAT that was never charged. That would produce a £300 base and a £15 levy, understating this example by £3. A price being described as “gross” in a booking export does not prove that it contains VAT.
If the agreed £378 already contains both accommodation and levy under these same assumptions, the accommodation component is £378 ÷ 1.05 = £360. Do not add another 5% to the £378 total. This reverse calculation is only suitable when the total contains those two components, with every night chargeable at the same rate.
What changes for a longer stay?
The Edinburgh scheme charges 5% for a maximum of five consecutive nights. For an illustrative seven-night stay at a constant £120 per night, with the same assumptions as above, the chargeable accommodation is 5 × £120 = £600 and the levy is £30.
For variable nightly rates, included extras or changes to the booking, retain the full breakdown and use the calculation guide. Do not reuse the equal-night example without checking its assumptions.
VAT registration is a separate check
HMRC's registration guidance currently sets a £90,000 taxable-turnover threshold. The tests include the previous rolling 12 months and expected turnover in the next 30 days; voluntary registration and separate rules for businesses based outside the UK can also matter. An annual platform payout is not enough to settle registration status.
The council's provider guidance says levy income is included in turnover. Keep it visible in your records and review the registration position with your accountant if you approach a threshold. This article does not determine your VAT registration obligations.
Prepare your calculator inputs and records
In the free levy calculator, choose Edinburgh and use the accommodation price that matches the source booking. Leave the VAT-inclusive option off when no accommodation VAT was charged. Record cleaning and optional extras separately so their treatment can be checked.
For each booking, keep the original price breakdown, booking and first-payment dates, stay dates, any exemption evidence, refunds and the levy actually collected. Compare the booking charge with the bank payout; any difference needs an explanation, such as a platform fee, rather than a change to the accommodation amount.
Before filing, use the quarterly return checklist. If your VAT status changes during a period, review affected transactions individually instead of applying one setting to all past bookings.