Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether VAT is charged by HMRC on the overnight visitor levy set by councils in (a) Wales and (b) Scotland.

Under UK VAT law, VAT is charged on the full amount paid by a customer for the goods or services they are purchasing. Therefore, where an overnight visitor levy forms part of the consideration paid for accommodation, VAT is charged on the total amount paid, including the levy.