Latest / STR Unpacked / The First Domino Falls in Edinburgh
Transcript
- Ben: morning and welcome to your short-term rental bulletin on the 23rd of July. So, tomorrow morning in the UK, the UK gets its first statutory tourist tax. So from Friday, the 24th of July, Edinburgh visitor levies goes live. 5% on the accommodation costs charged before VAT and capped at the first five nights. It covers the entire council area all year round indefinitely. And it applies to short-term less self-catering and apart hotels, not just hotels. Even businesses under the VAT threshold are liable. Scottish and UK guests have to pay it as well. So if you operate in Edinburgh, you're the collector, you charge the guest, you file the returns, and your first payment lands in October. One wrinkle. To check now, stays booked. And are fully or partially paid before the 1st of October last year are exempt. So your fringe calendar is a mix of levy and non levy bookings. The council expects up to £50 million a year by 2029, but the sector isn't waiving it through. Fiona at the ASSC has challenged whether the £5 million housing fund attached to the levy is even legal. Because the Act says proceeds must fund services for visitors, not residents. And they've made the wider point. This lands on top of one of the highest VAT rates in the world, while twenty-five EU countries give accommodation at a discounted rate. And Edinburgh is just a start. You've got Glasgow, Aberdeen, Stirling, and Rest Dunbartshire following next year. So This isn't a proposal anymore. It's live. It's in peak season, and with fringe days away, your pricing, your booking engine, and your guest comms need to show it. Correctly from tomorrow. The tax wave we tracked from Vienna just reached the UT. Do the maths on your Edinburgh rates tonight. That's your briefing, and I'll see you tomorrow. Thank you for watching.