Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department plans to make an assessment of the potential merits of excluding visitor levy receipts from the calculation of taxable turnover for the purposes of the VAT registration threshold, where accommodation providers collect and remit the levy to the relevant authority.

VAT is due on any amount equal to a visitor levy that is included in the price charged to the guest for taxable accommodation. A fundamental principle of VAT is that it applies to the total amount paid by a customer for goods or services, including taxes, levies and other charges that form part of that price.

The VAT registration threshold is based on the value of a business's taxable supplies under the UK VAT framework. These principles apply consistently across different sectors and types of charge and help ensure that the VAT system remains coherent and administratively workable.