VAT tax for people staying in airbnb in England (and Scotland)

VAT is 20% - it is included in the total bill - you don't need to do or owe anything

Thanks so much!

Hello from Wisconsin,

Yes you pay it. But it is included in the price.

I don't know if it is still possible to get a VAT refund, but there was a substantial thresh hold at each point of purchase that has to be surpassed before it is worth applying.

If I recall, there is no VAT on used clothing. The sales person in a nice mens clothing store where I was trying on sport coats asked me if I liked the one I was eyeing up. I said yes. He suggested I wear to the pub down the street and have a pint, to make sure it fit me. When I came back and was ready to buy, He said, "Oh, that's now a used coat now, there will be no VAT."

wayne iNWI

https://community.hmrc.gov.uk/customerforums/vat/0a3dc0dd-cc23-ed11-b5cf-00155d973ade#:~:text=There%20is%20no%20claim%20you,is%20no%20replacement%20for%20this.

"There is no claim you can make for a repayment of VAT incurred in the UK. The retail export scheme has been removed as part of Brexit and there is no replacement for this."

Regardless, VAT refunds are not given on services (including hotel stays) consumed within the country. Tourists can only claim VAT refunds on physical products (unused, in original packaging) which are not consumed in the EU, not services or products which are consumed within the EU.

I don't know if it is still possible to get a VAT refund,

It is not possible to get refunded for VAT for lodging.

Wayne, there is VAT on second hand clothing, so the trader who told you there wasn't was incorrect. There has never been a second hand scheme for VAT applying to clothes. Effectively he just gave you a discount equivalent to the VAT but he would still have been liable to pay VAT included in the discounted sale price over to HMRC (or HM C&E if it was before the merger of that department with the Inland Revenue to form HMRC). If he failed to declare the VAT on his sales on his takings correctly there's obviously no impact on the customer and would be the responsibility of HMRC to chase that up with him.

I can say this with some authority as I used to be a VAT inspector working for the UK Govt!

With regard to the original question, there is VAT on short term holiday accommodation if the owner/company is registered for VAT. But any VAT would be included in the rate you pay. If it's a small airbnb owned by someone who only has one property then they are unlikely to be registered for VAT.

Unlike in the US, no extra tax is added to the price you see. VAT is already included.

So, if the price of an item is 10 GBP, you pay 10 GBP.

If you buy something online in the UK, and have it shipped to the US, VAT is removed.