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What counts as holiday accommodation?

23 November 2023

HMRC's VAT Notice 709/3 outlines VAT treatment for hotels, motels, and holiday accommodations like caravans. Properties advertised for holiday use are always treated as such. Suppliers may need to charge standard VAT, with exceptions for sales and off-season lettings exceeding 28 days.

HMRC’s VAT Notice 709/3 entitled ‘Hotels and holiday accommodation’ explains how supplies by hotels and similar establishments such as motels, guesthouses and B&Bs should be treated for VAT purposes. In addition, the notice covers the VAT treatment of holiday accommodation such as caravans and camping facilities.

Holiday accommodation includes, but is not restricted to:

  • any house
  • flat
  • chalet
  • villa
  • beach hut
  • tent
  • caravan
  • houseboat

Always consider homes advertised or presented as suitable for holiday or leisure use as holiday accommodation. While restrictions on year-round occupation of the property may exist, such cases are not always prevalent.

If you supply holiday homes, you may need to account for VAT at the standard rate on any charges that you make regardless of the length of occupation or description of the charges. There are a number of exceptions to this including the sale of holiday accommodation and for off-season lettings of more than 28 days.

Source: HM Revenue & Customs Tue, 21 Nov 2023 00:00:00 +0100

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