Accommodation providers in Cardiff are being urged to prepare for the introduction of the Visitor Levy, with businesses required to start accounting for the charge from 28 September 2026.
The levy will apply to overnight stays in visitor accommodation across Cardiff, with providers needing to account for it on new bookings made from 28 September 2026 for stays taking place from 1 April 2027 onwards.
The requirement will also apply when additional nights or guests are added to existing bookings for stays from 1 April 2027.
Who needs to pay?
The levy applies to anyone taking bookings for overnight stays in visitor accommodation in Cardiff, including businesses that only operate for a single season or even a single night.
Levy rates
There are two rates of Visitor Levy depending on the type of accommodation provided.
A charge of 75p per person per night will apply to:
- Shared rooms in hostels, bunkhouses, bothies or dormitories
- Tent pitches, including temporary pitches provided for events and festivals
Children under the age of 18 are exempt from the lower rate.
A charge of £1.30 per person per night will apply to:
- Hotels, bed and breakfasts and guesthouses
- Self catering accommodation such as cottages and homestays, including Airbnb properties
- Caravan, motorhome and campervan pitches
- Temporary accommodation such as glamping pods for festivals
This higher rate applies to visitors of all ages.
Refunds for some visitors
Visitors may be able to apply for a refund from the Welsh Revenue Authority after their stay if they were:
- Acting as a carer for a disabled person
- Temporarily homeless during the stay
- Fleeing harm or domestic violence
Further guidance on refunds is expected before April 2027.
VAT considerations
Accommodation providers will pay the Visitor Levy to the Welsh Revenue Authority and VAT to HMRC where applicable.
For VAT registered businesses, VAT will apply to the total amount paid by visitors, including any Visitor Levy passed on to guests.
Businesses that are not VAT registered will not need to apply VAT, although they may need to register if their taxable turnover exceeds the VAT threshold.
Record keeping requirements
Providers must keep records of visitor numbers and the number of nights stayed.
They must also record details of stays where the levy is not payable, including:
- Bookings lasting 32 nights or more
- Children under 18 staying in accommodation that attracts the lower levy rate
- Temporary housing provided by local authorities
Records must be retained for at least six years after submitting a levy return.
Working out the levy
The amount owed can be calculated by multiplying the number of guests by the number of nights booked and then multiplying that figure by the applicable levy rate.
For example, four visitors staying for seven nights would create 28 overnight stays. At the £1.30 rate, this would result in a Visitor Levy charge of £36.40.
Filing returns and payments
Businesses will file and pay the levy either annually or quarterly, depending on how much they expect to owe.
Those expecting to owe £1,000 or less in their first year will file annually, while those expecting to owe £1,000 or more must file quarterly. Businesses owing less than £1,000 can still choose to file quarterly.
Annual returns and payments will be due by 31 May following the end of the accounting year. For example, the first annual return covering 1 April 2027 to 31 March 2028 must be submitted by 31 May 2028.
Quarterly returns must be filed and paid within 60 days of the end of each quarter.
Registration opens in autumn
Accommodation providers will need to register their visitor accommodation before filing and paying the levy.
Registration for visitor accommodation is due to open in autumn 2026.
The Welsh Government has published a 10 step guide to help accommodation providers prepare for the introduction of the Visitor Levy in Cardiff.
