DISCLAIMER: Please note, this is not a legally approved document. We are outlining what our customers doing in the United Kingdom when it comes to the statutory requirements. They may be using Mews to achieve some of it and some third-party services to get to some of the remaining requirements.
1. What are the VAT levels in United Kingdom?
The standard VAT rate is 20% on accommodation and products.
2. What type products should each VAT level apply?
20% VAT is applied on accommodation up to 28th night and all products including food, alcoholic and non alcoholic beverages. From the 29th night, the VAT drops to 4% for accommodation. The lower accommodation VAT rate for stays over 28 days is an 80% discount on the normal VAT rate for accommodation.
3. Is there an upcoming change of VAT levels?
The UK Government has lowered lowering tax rates by 80% from 15/7/2020 until 31/03/2021. Until the temporary Covid VAT reduction scheme, the 20% VAT has now dropped to 5% and the 4% VAT has now dropped to 1%.
4. Should deposits be used for VAT payments (in case of advance deposit payments) or not (or both are allowed) ?
Most deposits serve as advance payments and you must account for VAT in the return period in which you receive the payment. If you retain a deposit for a booking which your customer fails to take up, VAT remains due.
Deposit - https://www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093#section7
Cancellation Fees - https://www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093#section7
5. What City taxes apply in the United Kingdom?
There are no City taxes in the UK.
Fiscalisation and Reports:
6. Are there are fiscalisation requirements?
There are no fiscalisation requirements in the UK.
7. Are there any tourism reports required?
8. Is the Foreign Police integration required
9. Any other Statistical Authority reports required?
10. What data of guests should be collected (and does Mews require during online check-in) by law?
The only mandatory information to be collected is as below
Passport or Identity Card (unless guest is local)
Passport Expiration Date (unless Passport expiration date not required)
Identity Card Expiration Date (unless Identity card expiration date not required)
11. Is it legal to take copies of passports?
It does not seem mandatory however no information found on government website.
12. What is the accounting currency?
Pound Sterling (GBP/£)