Tuesday, 20 November 2012

VAT Secret: Hotel Room Booking

Issue 6: Booked a Hotel Room Lately?
I am happy to say that I have never booked a room and not show up, but let’s assume that you have; Following recent case law, if you make a deposit when you make the booking for an unspecified room then no VAT is chargeable if you decide not to turn up and the hotel charges you a “no-show” fee. So check your bills people.

Similarly, the booking fee/down payment itself is not Vatable until you are given a room.

Don’t you just love VAT? It’s oh so exciting!!! (No sarcasm on my part).

For further insights contact Marlon Appleton.


  1. The VAT guide for hotels says that deposits are VATable at the point of receiving the deposit, could you tell me where I can get more information on it not being VATable until you are given a room?

    1. Hi Anonymous, thanks for your query. You will often find that HMRC's primary online guides are not updated in real time. However to answer your question please refer to this link. http://www.hmrc.gov.uk/manuals/vatscmanual/vatsc42500.htm

      Please feedback and let me know if your question has been sufficiently answered or if you require further clarification. I am always eager to help.

      -Marlon Appleton