VATSC05826 | Consideration: Payments that are consideration: Deposits and hotel booking charges: Hotel late arrivals

Under the terms of the booking, a non-appearance, or a failure to cancel, before an agreed cut-off point may result in the customer being charged a fee - often the equivalent of a night’s stay.

Any charge is a consideration for making the room available and VAT must be charged on the amount received.

Should the customer still wish to stay at the hotel after arriving late, and the hotel agree to accommodate them - for example, if the customer books for four nights but (perhaps due to transport problems) does not arrive for the first night but wishes to stay for the remaining three - VAT is due on any charge made.