Hotel long-stay VAT calculator

Enter the nightly price and the length of a guest's stay to see the VAT for the first 28 nights and the reduced VAT from the 29th night.

Room price a night (£, including VAT)

The accommodation only. Enter meals and drinks below.

Meals and drinks a night (£, including VAT)

Nights in the continuous stay

Share of the room price for facilities (%)

At least 20%. Use a higher figure if the facilities are worth more.

Figures use 2026/27 rates and simple assumptions, for planning. Ask us to run it on your own figures.

How the figures are worked out

For the first 28 nights, VAT is one sixth of everything the guest pays.
From the 29th night of a continuous stay, VAT on the room is charged only on the facilities part, at least 20% of the value. The guest is taken to pay the same price throughout, so VAT on the room each night is the price times 0.2 × the facilities share, divided by 1 plus 0.2 × the facilities share. At 20% that is one twenty-sixth.
Meals and drinks carry VAT at 20% in full on every night.
The rule runs from each person's own 29th night, applies to hotels, inns, guest houses and boarding houses, and does not apply to holiday accommodation.

Send us a month of till reports and the wage bill and we will work out your real margins, labour cost and VAT position.