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The Visitor Levy (Scotland) Act 2024 gives local authorities the power to implement a levy on overnight accommodation charges, with the money going towards enhancing services and infrastructure mainly used by leisure and business visitors.
It is the decision of each individual local authority to decide whether they introduce a levy, how it is administered and the percentage rate it will be set at.
This guidance is for individual businesses who may need to charge the visitor levy in future to their customers.
VisitScotland delivered statutory guidance for local authorities on the visitor levy at the request of Scottish Government ministers. This was to assist local authorities in considering, and if required, introducing and administering a visitor levy in the most effective way possible.
VisitScotland’s position is that each local authority needs to carefully consider whether a visitor levy would work for them, the profile of their visitors and impact of a levy.
Local authorities are at different stages of considering or implementing a visitor levy. Find out if your local authority has proposed or approved a visitor levy scheme and how you can contribute to consultations.
From 24 July 2026, a levy of 5% on overnight accommodation will be applied to a maximum of five nights.
Businesses will need to apply the levy to any advance bookings made as of 1 October 2025 for stays on or after 24 July 2026.
Accommodation providers will keep 2% of the money collected to offset some of the costs involved.
The majority of the funds will be spent on:
There will also be a fixed amount set aside for housing and tourism mitigation and participatory budgeting.
Main contact details for the council are: visitorlevy@edinburgh.gov.uk.
Read the detail of Edinburgh’s visitor levy scheme.
From 25 January 2027, a levy of 5% on overnight accommodation will be applied for the full length of a stay in the city.
Businesses will need to apply the levy to any advance bookings made from January 2026 for stays on or after 25 January 2027.
Accommodation providers will keep 1.5% of the money collected to offset some of the costs involved.
After administration costs, the remaining funds will be spent on:
More details will be published on Glasgow City Council’s website.
The council's formal consultation period closed on 1 July 2025. Main contact details for the council are EconomicsTeam@aberdeencity.gov.uk.
Find further information on the consultation on aberdeenvisitorlevy.commonplace.is.
The council's formal consultation period closed on 10 April 2025. Main contact details for the council are: abvl@argyll-bute.gov.uk.
Find further information on the consultation on argyll-bute.gov.uk.
The council's formal consultation period closed on 31 March 2025. Main contact details for the council are visitorlevyconsultation@highland.gov.uk.
Find further information on the consultation on consult.highland.gov.uk.
Other local authorities are engaging in early discussions to inform their plans.
Those who have so far published information on the visitor levy include:
The introduction of a visitor levy presents both challenges and opportunities for tourism businesses:
Active participation in consultations and engagement with local authorities can help shape levy schemes to align with business needs and contribute to the sustainable development of the tourism sector.
Accommodation providers will be responsible for collecting and sending on the levy payment. It's crucial to understand the administrative requirements and ensure compliance with local council guidelines.
The levy aims to generate significant funds for local tourism infrastructure, potentially enhancing the visitor experience and benefiting businesses.
This is general information only. To get the detail on any topic, please check your local authority website or contact them directly.
Use the Guidance on the Visitor Levy for local authorities | PDF 0.1MB which provides information on the development and implementation of a visitor levy, as well as on collecting and remitting a levy. There is also a glossary of terms used in the visitor levy guidance | PDF 0.1MB.
The local government Improvement Service is developing a national online collection platform where businesses can submit their visitor levy returns. This system will be available across Scotland for participating local authorities, with returns required quarterly. It will provide a clear framework for submitting required data, ensuring accuracy and compliance. Training materials will be provided to help businesses understand and use the platform effectively.
Here is an overview of key topics businesses may need to consider regarding the proposed visitor levy. Each question directs you to a chapter within the guidance on the visitor levy above for further information.
If your local authority is considering a visitor levy, it should be carrying out early engagement to inform this process ahead of launching a formal consultation. Please check your local authority website, or contact them directly.
We will be updating our list of proposed visitor levy schemes when information becomes available.
Visitor levy funds must support facilities and services primarily used by visitors, aligned with local, regional and national tourism-related strategies. Resident-used facilities can be funded if substantially used by visitors.
Local authorities must produce annual reports detailing fund use and establish a Visitor Levy Forum with balanced representation from communities, tourism businesses, and organisations.
Please see chapter 12 "Use of Funds".
If you operate in multiple local authority areas, you will need to engage with each local authority individually to understand their visitor levy plans, as schemes will vary based on local priorities and flexibilities.
You may be able to use the new national online collection platform being created by the local government Improvement Service if your local authority decides to participate.
Please see chapter 16 “Remittance”.
The visitor levy is a percentage of the accommodation cost per night (not per person). The percentage rate is set by the local authority, who may introduce a cap on the maximum number of nights the levy should apply.
The visitor levy applies only to the accommodation portion of a stay. Accommodation providers should deduct the amount reasonably attributable to non-accommodation costs, and calculate the visitor levy on the remaining amount. Anything that you usually charge separately for (eg meals or drinks, parking, transportation, visitor use of laundry facilities) should not be included in the calculation.
Regarding online travel agents (OTAs), the levy does include commission paid to the OTA. To calculate:
Note: Depending on your web booking engine and/or OTA, you should confirm how it accommodates for the visitor levy.
Please see chapter 10 "Calculation of a Levy" for worked examples for various accommodation types.
The visitor levy legislation does not determine how the levy should be listed when it is charged. Existing rules on pricing therefore apply.
The visitor levy must be clearly shown at the time of booking. For example you can display the levy as:
You can show prices without the visitor levy as long as the levy amount or percentage is clearly displayed alongside the price.
For transparency, you may also want to consider updating your website, adverts, and promotional materials to reflect the levy. Prices must follow existing pricing regulations and make it clear that the visitor levy applies.
This should be done for those who book in advance as well as for those visitors who walk in on the day without having pre-booked.
Please see chapter 10 “Calculation of a Levy”, chapter 15 “Billing of Overnight Accommodation” and chapter 20 “Communication”.
There are a few groups or individuals that are nationally exempt. These are:
Local authorities also have power to introduce local exemptions that meet their own needs but are encouraged to ensure limited administration or financial burden on businesses.
Please see the chapter 17 "Exemptions".
Local authorities must specify whether accommodation providers below the VAT threshold will be included or exempt from the visitor levy.
Any visitor levy charged by an accommodation provider will be considered part of their turnover and will attract the same VAT liability as the accommodation itself. This will be used to determine if you need to register for VAT.
Please see the section "VAT" within chapter 10 "Calculation of a Levy" for example calculations.
You may be able to use the new national online collection platform being created by the local government Improvement Service if your local authority decides to participate.
Please see chapter 16 "Remittance".
Visitor levy returns are expected to be made to local authorities on a regular basis (eg quarterly), with the exact form and content of these returns up to the discretion of the local authority.
Please see chapter 16 "Remittance".
Accommodation providers must pay the full visitor levy to the local authority and cannot deduct any costs unless the local authority states otherwise. While not required, some local authorities may offer support to help with costs. For example, City of Edinburgh Council allows accommodation providers to retain 2% of the levy they collect.
You may be able to use the new national online collection platform being created by the local government Improvement Service if your local authority decides to participate.
Please see chapter 14 "Assistance for Liable Persons".
Your local authority will communicate which information you need to submit to them as part of your returns. You may be able to use the new national online collection platform being created by the local government Improvement Service if your local authority decides to participate.
Accommodation providers are responsible for making sure that suitable records and returns are made and kept for all visitor levy transactions. Local authorities will specify record-keeping requirements, including retention periods, which are typically several years.
Please see chapter 14 "Assistance for Liable Persons" and chapter 16 "Remittance".
If your local authority chooses to operate exemptions via a process of reimbursement, then the visitor eligible for exemption would pay the levy as any other visitor would. Following the completion of their stay, the visitor would follow the steps outlined by the local authority to receive the relevant reimbursement from them. In this instance, the visitor wouldn't be required to show any documentation to the business.
Local authorities are encouraged to recognise any administrative burden that any exemptions could have on accommodation providers.
Please see chapter 17 "exemptions".
The visitor levy should not be applied to accommodation booked before a local authority officially announces its intention to introduce a scheme. Based on the legislation, if a booking is made after the announcement, and the stay occurs after the levy comes into effect, the visitor levy may apply, unless a local authority has established a transition period.
It will be for the local authority and businesses to consider arrangements for collecting a levy from bookings made after the visitor levy scheme comes into effect but before accommodation providers have put a system in place.
For example, in Edinburgh, businesses must display the levy from 1 October 2025 for stays on or after 24 July 2026.
Check with your local authority for exact dates and ensure visitors know about the levy when booking.
Please see the section “Transitional Provisions” within chapter 13 "Liable Persons".
There may be cases where a visitor who attempts to purchase overnight accommodation refuses to pay the visitor levy. This may occur where a visitor attempts to purchase overnight accommodation at the point of entry to the accommodation premises and not in advance of travel. In this scenario, the accommodation provider would remain the liable person, and could choose to cancel the booking or absorb the cost of the visitor levy.
The legislation only requires that the visitor levy is charged if a person actually stays at your accommodation business. You should only remit the levy charged to the local authority after a stay is complete.
If the visitor does not stay in your accommodation and no levy payment has been received, you do not need to take any action.
If the visitor already pre-paid the levy but did not stay in the accommodation, you'll have to refund them the levy in full.
Please see the section "Cancellation" within chapter 13 "Liable Persons".
Regardless of the option chosen, the accommodation provider remains the liable person and is responsible for ensuring the levy is collected and paid correctly. However, they can choose to collect it themselves or arrange for a third party to do so.
There are three options:
Visitors must always be clearly informed about the visitor levy at the time of booking.
Please see chapter 13 "Liable Persons".
Due to the complex nature of how third party intermediaries will interact and work with accommodation providers in relation to the visitor levy, more information on this will become available as soon as possible.
Local authorities are encouraged to offer businesses additional advice and support as they develop and implement their visitor levy schemes.
If you have questions about the visitor levy or need support, please contact your local authority directly. For specific enquiries about this page on visitor levy guidance, you can email business.support@visitscotland.com.
