The single most important thing for operators: an exemption usually does not mean you don't charge. For most exemptions the guest pays the 5% levy, then reclaims it from the Council. Your job is to charge and record correctly and keep the evidence — not to decide eligibility at the desk.
How exemptions work in practice
For most exemptions, the guest pays the levy to the accommodation provider at the time of their stay, and then reclaims it directly from the Council afterwards with supporting evidence.
In other words, you generally still charge the levy. You do not decide on the spot whether a guest qualifies and waive it — the guest pays, and the Council handles the reclaim. The exception is where the accommodation has been arranged and paid for directly by the Council, in which case it's handled differently.
You don't have to assess anyone's circumstances. Charge and record correctly, keep the evidence, and let the Council manage reclaims. For how exemptions sit within the wider scheme, see the levy explained.
Who is outside the scope of the levy
The Visitor Levy (Scotland) Act 2024 is written so that the levy applies to paid overnight stays away from a person's home. Because of this, the Council's scheme provides that certain people who may not have a permanent or safe home are not liable. This includes:
- People who are homeless or at risk of homelessness.
- People living in very poor housing conditions, such as serious overcrowding or disrepair.
- People experiencing domestic abuse or other forms of violence.
The Act additionally provides that members of Gypsy or Traveller communities staying on dedicated sites do not have to pay.
Guests exempt on benefit grounds
The Council's scheme sets out that, as agreed, individuals in receipt of certain benefit payments are exempt. At the time the scheme was agreed, these were:
- Disability Living Allowance
- Disability Assistance
- Attendance Allowance
- Pension Age Disability Payment
- Personal Independence Payment
These guests pay the levy to the provider and then reclaim it from the Council, submitting evidence such as the relevant benefit award letter, the booking confirmation or invoice showing their name, and proof of payment for the accommodation.
The benefit names above are quoted from the Council's scheme as agreed. The Council can revise the list over time, so always check the Council's current exemptions page for the latest position before relying on it.
What the reclaim process looks like for the guest
A guest reclaiming the levy applies to the Council, usually online, and submits the required evidence and their bank details. The Council assesses the evidence and, where the applicant is found eligible, pays the reimbursement by bank transfer — the Council has committed to issuing eligible reimbursements within five working days. Reimbursement can only take place after the visitor has taken entry to their accommodation.
What providers need to do
Your role as an accommodation provider is straightforward, but it must be done properly:
- Charge the levy correctly in the first place, unless the stay falls outside scope or the Council has arranged and paid for it directly.
- Keep accurate records of every transaction subject to the levy — the Council carries out inspections to check compliance. (See how to file your return for what those records feed into.)
- Retain documentation relating to an exempt booking where you hold it, and keep it on file.
Note there is also a separate discretionary site exemption that certain providers may apply to the Council for, where the property is occupied by a charity and used wholly or mainly for charitable purposes. This is a property-level exemption granted by the Council, distinct from the guest exemptions above.
Recording exemptions accurately
Exempt and reclaimed bookings still need to appear correctly in your records and your return. Charging a levy on a stay that is genuinely outside scope, or failing to document an exempt booking properly, are the kinds of discrepancies that matter if the Council inspects.
Keep exempt and zero-levy bookings straight
LevyReady flags exempt and zero-levy bookings in your data and keeps the evidence trail clear, so your return reflects what actually happened — with a self-check that blocks a wrong figure. It all runs in your browser; your booking data is never uploaded.
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Who is exempt from the Edinburgh visitor levy?
People outside the scope include those who are homeless or at risk of homelessness, people in very poor housing conditions, people experiencing domestic abuse, and Gypsy or Traveller community members on dedicated sites. Guests receiving certain disability-related benefits are also exempt.
Do exempt guests still pay the levy?
In most cases yes. The guest pays the levy to the provider and reclaims it from the Council with evidence, unless the Council arranged and paid for the accommodation directly.
How do guests reclaim the Edinburgh visitor levy?
They apply to the Council with evidence such as a benefit award letter, booking confirmation and proof of payment. Eligible reimbursements are paid by bank transfer, which the Council aims to issue within five working days.
What do providers need to do about exemptions?
Charge and record correctly, keep accurate records for the Council's inspections, and retain any documentation relating to exempt bookings.
This guide is general information, not tax or legal advice, and figures and exemptions reflect the City of Edinburgh Council scheme as published (confirm current details, including the exemptions list, on the Council's portal). LevyReady does not file returns on your behalf — the operator remains legally responsible for the accuracy of all submissions.