Each country applies tax at different levels. Certain local authorities apply taxes too. We will advise you of any relevant, applicable taxes on your accommodation; however, some common tax rules have been listed below.
Common tax rule Value Added Tax (VAT) is charged at 20% for the first 28 consecutive nights, then at 4% for each remaining consecutive night after that.
Alternative tax rule
A small number of properties only charge VAT on the amount that they deem to be the service element. For example, with a rate of £110, £100 is deemed to be for accommodation and £10 is deemed to be service. VAT at 20% is then only applied to the £10 service element. We’ll always advise you of any alternative tax policies at the quote stage and re-confirm the same at the booking and billing stages.
Outside of the United Kingdom Government tax
This is the tax element levied by the national government of the country in question.
GST (Goods & Services Tax)
Applies in countries such as Australia, Canada, Hong Kong, New Zealand and Singapore.
VAT (Value Added Tax)
Applies in all countries within the EU. Referred to as VAT in the UK, Ireland and Malta, but different abbreviations are used elsewhere in Europe, such as IVA in Spain and BTW in the Netherlands. VAT also applies in many countries around the world including India, Mexico, South Africa and Thailand. It may be known locally by different abbreviations.
Some city authorities charge an additional tax. An example of this is Paris, which applies a fee of EUR 0.80 to EUR 1.50 per person per night (depending on the specific area within Paris).
Some city authorities charge additional taxes for tourists. These taxes generally apply to business travellers too. An example of this is Amsterdam, which applies a 5% tourist tax.
Less common taxes
Occasionally, other taxes are mandatory in certain jurisdictions. Examples of these include ‘luxury tax’ at certain properties in India and New York City’s ‘development tax’.
This is not a tax, but is an additional charge that applies at certain properties. It is generally incorporated into the accommodation rate, but is occasionally stated as an extra charge. Unlike restaurant bills, this service charge is never discretionary.