The Visitor Levy

The visitor levy is a Scotland-wide tourist tax implemented first in Edinburgh, charged as a percentage-based fee on short-term rentals for visitors, including tourists and temporary workers.How does the visitor levy work? The Scottish Government created a flexible framework allowing councils to charge the levy in different ways, including a percentage-based model limited to the first five nights of a stay. Challenges Bookster faces with the visitor levy implementation Calculating the levy accurately due to complex pricing structures, handling bookings with multiple guests over different periods, lack of clear guidance on remittance, and the administrative burden pushed onto the industry. The % based model of the visitor levy is problematic It requires integrating the levy calculation with booking prices, including channel markups and extras, and complicates price transparency and payment processes, unlike simpler fixed per-night fees collected at check-in. Issues from the levy applying only to the first five nights Complexity in calculating the levy for longer stays, especially when guests change during the booking, requiring splitting bookings and pro-rata calculations that are difficult to implement. Visitor levy affect the pricing and tax thresholds for hosts? The levy increases turnover, potentially pushing hosts over VAT thresholds, increasing their tax operational complexity, and adding to the cost of services for guests. Hope regarding the future of the visitor levy Hope is that the levy will be delayed or simplified after industry feedback, but preparations must continue due to the imminent start date. How does Bookster plan to handle the technical challenges? Bookster plans to modify its architecture to accommodate levy calculations - this requires significant development and may affect system efficiency. Impact of the visitor levy on Bookster's clients so far Clients are confused and stressed, with some incorrectly charging the levy early, leading to errors and the need for clear guidance and support from Bookster. A Simple Alternative Guests pay the levy directly to a council via a simple payment link / QR code, reducing administrative burden generally.