As freetobook is based in Scotland, we’ve been closely following the development of the new Visitor Levy tax. Our systems are already fully prepared and compliant, ensuring the tax is displayed correctly to guests making bookings.  

Edinburgh will be the first council to go live, with Glasgow set to follow next year. Other councils are also expected to introduce the levy in due course.  

What is the Scottish Visitor Levy? 

Scottish councils now have the right to charge a new tax specifically on accommodation businesses. The key points are: 

If your council decides to implement the Scottish Visitor Levy tax:  

1. It will be included in the prices your customer pays to you.  
2. Guests must be able to see how much Visitor Levy is included in their booking. 
3. All accommodation providers will be required to pay the tax. 
4. The levy only applies to the accommodation element of a booking (not meals or extras such as breakfast, lunch, or dinner). 
5. If you are VAT registered, VAT will also be due on the Visitor Levy; effectively a tax on a tax. 
6. Your revenue will include the levy when calculating your VAT threshold. 

How will the levy work? 

• Each council sets its own percentage rate, up to a maximum of 10%.  

• Edinburgh has set the rate at 5%. 

• Councils can also set limits, such as a maximum charge per night or a maximum number of nights the levy will apply.   

• For Edinburgh, the levy applies for the first 5 nights of a stay. 

• The levy applies only to new bookings made after a set date, for arrivals after another set date.  

• In Edinburgh, it applies to bookings made after 30th September 2025, for arrivals from 24 July 2026 onwards. 

What do you need to do? 

If your council introduces the Visitor Levy, you will need to: 

1. Increase your prices in freetobook to include the levy percentage.  
2. If your prices currently include breakfast, consider switching to a room-only rate and offering breakfast as an optional extra. 

Freetobook will then automatically show guests the correct amount of Visitor Levy based on the prices in your freetobook calendar. 

⚠️ If you do not increase your prices, you will still be liable to pay the Visitor Levy based on the rates in your freetobook calendar.  

Further Information: 

• Visit Scotland Guidance on the Visitor Levy tax 

• Edinburgh Visitor Levy information for accommodation businesses