Consistency key to success: welcoming steps to simplify the Welsh visitor levy
The Chartered Institute of Taxation (CIOT) welcomes the Welsh government’s commitment to addressing some of the administrative burden associated with the new visitor levy on businesses. However, the Institute emphasises that the success of this initiative hinges on the implementation of a consistent national model for the levy.
The introduction of compulsory registration for accommodation providers in Wales has been welcomed by the Institute. However, some concerns remain about the potential administrative complexities that collecting and reporting the levy could impose.
This follows the publication of the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill1 by the Welsh Government yesterday.
Ritchie Tout, Chair of the CIOT’s Welsh Technical Committee, said:
“We are encouraged by the Welsh Government’s willingness to engage and listen to stakeholders, and address several issues that could have posed challenges for businesses.
“A consistent national model for the levy is key to its success, ensuring fair taxation that supports public investment while reducing burdens on businesses. Avoiding a fragmented patchwork of levy structures will simplify implementation, benefiting both businesses and councils.”
On reporting frequency, Ritchie Tout added:
“The introduction of an annual return option for small-scale accommodation providers, alongside the default quarterly returns, strikes a sensible balance.
“Quarterly digital returns are a reasonable approach that aligns with other existing reporting obligations like VAT and Making Tax Digital for income tax. This caters to the seasonal nature of visitor accommodation and reduces the reporting burden for businesses with significant numbers of stays. For larger businesses, we believe a monthly reporting option could be more suitable.
“The government needs to ensure that the reporting process is as smooth as possible for all users, including those digitally excluded, as many rural parts of Wales still lack reliable broadband access.”
Ritchie Tout concluded:
“Striking the right balance between compliance and efficiency is vital. Simplifying the process as much as possible will help ensure the levy achieves its objectives without placing an undue burden on businesses or increasing the cost to local authorities of monitoring compliance.”
Notes for editors:
1. Visitor Accommodation (Register and Levy) Etc. (Wales) Bill