Andrew Needham looks at the use of the tour operators margin scheme with Airbnb type lettings.
Airbnb-type supplies of holiday accommodation are becoming increasingly popular; property owners are putting their properties ‘up’ with these types of companies and web sites, as well as letting them out directly themselves.
Increasingly popular
The types of property used range from small flats to large houses. In normal circumstances, the rental of residential accommodation is exempt from VAT, so no VAT is due on residential property rentals. However, there are some exceptions to the VAT exemption for the rental of residential property. The supply of hotel and ‘similar accommodation’ is not exempt and is subject to VAT at the standard rate of 20%.
Holidays of the Airbnb-type model are becoming more popular and
