Value Added Tax Consolidation Act 2010 Schedule 3 paragraph 11

Hotel, holiday accommodation

Schedule 3 paragraph 11 applies the reduced rate of VAT to the provision of guest or holiday accommodation in hotels, guesthouses, houses, apartments and similar establishments, and sets out the distinction between accommodation and room hire following changes made by Finance Act 2025.

• Guest or holiday accommodation in hotels, guesthouses, houses, apartments, other establishments and caravan or camping sites is liable to VAT at the reduced rate.
• From 1 January 2026, the hire of a room for a non-accommodation purpose (such as a conference or meeting) is liable to VAT at the standard rate in all venues, including hotels.
• Where advance payments for room hire straddle a rate change, VAT applies at the rate in force when the invoice is issued or ought to have been issued, whichever is earlier.
• Revenue may make regulations clarifying when a letting qualifies as guest or holiday accommodation, which may assist in borderline cases.