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VAT on apartment rentals in London

I know that hotels have to include the VAT in the price, but when looking for a place to stay on VRBO it specifically says that taxes are not included. Does anyone know what the tax would be on that? If it's 20%, as it would appear, that gets steep fast!

Posted by
8 posts

So I guess the assumption is that these rentals are subject to VAT but that the owners are not subject to the requirement to include the VAT in the posted price?

Posted by
1644 posts

Holiday accomodation is subject to VAT at the full rate of 20%, and if it was a UK based listing site I would expect, and the law would require, it to include the VAT. The problem is this sounds like because it is a US based site they have not included the VAT. I would double check with the site over which taxes still to be calculated and at what rate.

Posted by
8 posts

Thanks - that sounds right to me, too. It just has to be calculated into the budget!

Posted by
5326 posts

VAT will depend on whether the owner is registered for VAT or not. A person with a single property may well be below the annual threshold.

Posted by
437 posts

I think when the site does not include taxe, it is very hard to compare prices because the tax rates vary quite a bit! A higher-priced place can end up being cheaper depending on added taxes.

Posted by
4518 posts

You may have to email them and ask, and also ask about the cleaning fee. Security deposits seem to be at the discretion of the host at the time of rental and are often waived.