The Edinburgh Visitor Levy has added a new task to running short-term accommodation: making sure eligible bookings are priced, recorded and reported correctly. For Airbnb hosts and landlords, understanding the charge is only the starting point. The practical work lies in fitting it into your booking process without creating unexpected costs or confusion for guests.
This guide explains how the levy applies, how to calculate it and what you need to prepare for Council reporting. The information reflects official guidance available on 14 October 2026.
What Is the Edinburgh Visitor Levy?
The levy is a charge on eligible paid overnight accommodation within the City of Edinburgh Council boundary. It applies to several accommodation types, including Airbnb properties, self-catering apartments and holiday lets. Businesses below the VAT threshold are also covered.
The 5% Rate and Five-Night Cap
Edinburgh’s rate is 5% of the accommodation cost before VAT, charged for a maximum of five consecutive nights. The rate applies throughout the year, so hosts need a consistent process for both quieter periods and peak-season bookings.
Which Properties and Guests Are Covered?
The scheme includes paid visitor accommodation used for holidays, work trips and other visits. UK and Scottish residents are included, so a guest’s nationality or business-travel status does not automatically exempt them. Certain exemptions exist, which we explain below.
Which Bookings Are Subject to the Levy?
Before calculating a charge, establish whether the reservation falls within the scheme. Keeping booking and payment information together makes this check easier, particularly when reviewing reservations made before the levy began.
Stay Dates and the Booking Cutoff
The scheme applies to eligible stays beginning on or after 24 July 2026, with a booking cutoff of 1 October 2025. Reservations booked and paid for, in part or in full, before that cutoff may qualify for the pre-booking exemption.
How to Check Older Reservations
Review the original confirmation, payment evidence and any subsequent changes. Before marking an older booking exempt, compare its circumstances with the Council’s detailed guidance. A booking date alone should not be your only evidence.
How to Calculate the Edinburgh Visitor Levy
Once eligibility is clear, identify the accommodation amount on which the levy should be calculated. This requires attention to the charges included in your booking price.
Nightly Rates and Mandatory Cleaning Charges
Standard mandatory cleaning generally forms part of the accommodation cost, even when itemised separately. For longer bookings, use the actual charges attributable to the first five nights rather than an average across the entire stay.
Optional Extras and VAT
Separately chargeable extras such as parking, meals and transport are excluded from the accommodation calculation. For VAT-registered providers, the levy is calculated before VAT and is itself subject to VAT. Make sure your accounting setup distinguishes these amounts correctly.
Worked Examples for Short and Extended Stays
These examples assume an eligible booking, a non-VAT-registered provider and prices that do not already include the levy.
| Booking | Calculation | Levy |
|---|---|---|
| Three nights at £100, plus £60 mandatory cleaning | (£300 + £60) × 5% | £18 |
| Seven nights at £100, with no additional charge | First five nights: £500 × 5% | £25 |
If nightly rates vary, replace the flat-rate assumption with the actual first-five-night charges.
How to Collect the Levy Through Airbnb and Direct Bookings
With the calculation established, the next task is checking how the charge reaches the guest. Review each booking channel individually, because a correct calculation in your accounting system does not guarantee a correct guest-facing price.
Airbnb’s Collection and Payment Responsibilities
Airbnb’s current guidance says it does not automatically remit Edinburgh’s levy to the Council on a host’s behalf. Hosts remain responsible for accounting for the charge and paying it. Do not assume that platform tax settings complete the reporting process.
Showing Guests the Correct Total Price
Airbnb states that the final price displayed and paid on its platform must include the levy. Hosts should not request extra money afterwards to cover a charge omitted from that price.
For direct bookings, make the full levy-inclusive price clear before confirmation. Test the booking journey from a guest’s perspective and check that confirmations match your records. This helps prevent duplicate charges and reduces questions at check-in.
How to Handle Exemptions, Cancellations and Refunds
Some guests may qualify for exemption or reimbursement because of their circumstances or qualifying benefits. The Council publishes eligibility requirements and supporting-evidence guidance. Direct guests to that information rather than deciding eligibility informally; the refund process generally requires the stay to have ended.
Cancellation treatment depends on whether the guest entered the accommodation. If they never enter, the levy does not become payable, and guidance recommends refunding a levy amount collected in advance. A refund after entry can have a different outcome.
Keep these adjustments connected to the original reservation so your reporting reflects what happened.
How to Submit Returns and Pay the Council
Good booking records should feed into a regular reporting routine. Set aside time to reconcile eligible stays before each return deadline.
Using visitorlevy.scot
Accommodation providers report and pay through visitorlevy.scot. The portal handles submissions and payments to the local authority; it is not a checkout system for charging guests.
Reporting Periods and Payment Deadlines
For the first reporting period, covering 24 July–30 September 2026, the return deadline is 30 October 2026 and the payment deadline is 13 November 2026. Record both dates separately.
Records Hosts Need to Keep
Supporting records generally need to be retained for five years from submission. Keep confirmations, payments, calculations and adjustments organised by reservation so figures can be traced without reconstructing them later.
Agreeing Responsibilities With Your Property Manager
If a manager or co-host handles bookings, agree who updates prices, checks calculations, maintains records and prepares returns. Owners considering property management edinburgh should have these responsibilities documented before relying on someone else’s process.
Cross-border portfolios need separate local checks. If you also work with a Property Management Company Scotland, keep Edinburgh-specific settings and responsibilities clearly identified within the wider arrangement.
Edinburgh Visitor Levy Checklist for Hosts
Before your next reporting deadline:
- Check which reservations are eligible.
- Review accommodation charges, mandatory cleaning and VAT treatment.
- Test guest-facing prices across booking channels.
- Reconcile cancellations, refunds and supporting evidence.
- Confirm who prepares the return and authorises payment.
- Keep submission and payment confirmations with your records.
Making these checks part of your regular rental property management routine will reduce last-minute work and make discrepancies easier to resolve.
Frequently Asked Questions
Does Airbnb Automatically Pay the Levy to the Council?
No. Airbnb currently states that automatic remittance is unavailable, leaving the host responsible for payment.
Does the Levy Apply to Business and Contractor Stays?
Business travel is not automatically exempt. Check the booking’s eligibility and any applicable individual exemption.
Do Hosts Below the VAT Threshold Need to Pay?
Yes. Being below the VAT threshold does not remove an accommodation provider from the levy’s scope.
What Happens When a Booking Exceeds Five Nights?
The levy is capped at the first five consecutive nights of an eligible stay.
Managing the levy becomes easier when pricing, guest communication and accounting follow one agreed process. Confirm eligibility first, keep your calculations traceable and prepare returns ahead of the deadline. Those habits help protect both the guest experience and the clarity of your property’s finances.
