4% VAT on 29th Night of stay onwards
Posted: Tue Mar 31, 2026 3:41 pm
Hi,
We're changing business model from 2027 to primarily an extended stay hotel - to meet demand for a decade long local construction project.
We're VAT registered, but for extended stays of 29 consecutive nights or more, the VAT reduces to 4% (being 20% VAT on the 'additional services' included in the room price, which are deemed by default to be 20% of the room price by HMRC).
An AI search seems to give instructions on how to set up VAT in Beds24 as 4% on the 29th night of a booking onwards, but I can't follow it (the settings it mentions aren't where they say they will be).
Can this be done, and if so, how please?
Thanks,
Martin
We're changing business model from 2027 to primarily an extended stay hotel - to meet demand for a decade long local construction project.
We're VAT registered, but for extended stays of 29 consecutive nights or more, the VAT reduces to 4% (being 20% VAT on the 'additional services' included in the room price, which are deemed by default to be 20% of the room price by HMRC).
An AI search seems to give instructions on how to set up VAT in Beds24 as 4% on the 29th night of a booking onwards, but I can't follow it (the settings it mentions aren't where they say they will be).
Can this be done, and if so, how please?
Thanks,
Martin