Short let landlords: AirBnBs are not VAT exempt

Posted: 3/1/2024


A recent tax tribunal has ruled that serviced short-let accommodation is not VAT exempt, so what does this mean for AirBnB landlords? Well, for the majority with either a single property or small number, it will have no effect, as the annual minimum VAT revenue threshold is £85,000. That means that you can charge up to £85,000 without having to register for (and pay) VAT. The specific legilslation that HMRC relied upon in this case referred to wording which stated "hotel, inn, boarding house or similar establishment". The tribunal agreed that serviced accomodation was a "similar establishment" and was therefore liable for VAT, as the tax payer in question exceed the threshold. 


Key One Property - specialists in residential lettings, management and sales. 

Notes: the above is for information only and is not tax advice, nor does Key One Property accept any liability for the correctness of the detail of the above. You should seek specific guidance from a tax professional or HMRC. 


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