Councils across Wales can introduce a visitor levy on overnight stays, but only after consulting residents and local businesses. Cardiff Council is the first to do so and other councils may follow. If your clients let out accommodation in Cardiff or elsewhere in Wales, they may come to you with questions about what this means for them.

From 28 September 2026, accommodation providers in Cardiff must start accounting for the levy on new bookings, and on extra nights or guests added to existing bookings, for stays from 1 April 2027.

This applies to all types of visitor accommodation, including hotels, B&Bs, self-catering lets, caravan and camping sites. It also applies to casual hosts who let a home or spare room, even occasionally.

There are two levy rates:

• 75 pence per person per night for shared rooms in hostels, bunkhouses, bothies or dormitories and tent pitches
• £1.30 per person per night for all other accommodation.

Some stays are exempt. Providers can choose whether to absorb the cost or pass it on to visitors.

VAT

If your client is VAT registered, VAT applies to the total amount guests pay for their stay, including visitor levy where the cost is passed on. This means VAT registered providers pay the visitor levy to the WRA and VAT to HMRC separately. A relief may be available for stays of 29 or more nights in a row.

If your client is not VAT registered, raising prices or charging levy fees counts towards their taxable turnover, and they may need to register for VAT as a result.

Filing and paying

Providers will file and pay the levy to the WRA either yearly or quarterly, depending on how much they expect to owe. Legal liability rests with the accommodation provider, not the visitor.

Visitor accommodation registration

Anyone who takes bookings for overnight stays in Wales must register with the Welsh Revenue Authority (WRA) by 31 March 2027. Registration opens in October 2026.  Accommodation providers must register even if their local council does not introduce a visitor levy.

Where accountants come in

Your clients may ask you to help them understand their obligations, calculate what they owe, or file returns on their behalf.

Key things to know:

• the levy applies per person, per night, so providers need accurate records of guest numbers and nights stayed for each booking
• booking platforms may not automatically add the levy, so providers should check with each platform or software provider they use
• filing yearly or quarterly can affect cash flow, so you may want to discuss this with clients early.

Get support

The WRA has produced a step-by-step guide to help providers prepare, alongside more detailed technical guidance for anyone who wants to understand the requirements in depth.

For further help, contact the Welsh Revenue Authority.