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The phrase "it's vacation" is correct and usable in written English.
You can use it to indicate that it is currently a vacation period or to express that you are on vacation.
Example: "I'm so excited because it's vacation, and I finally have time to relax and travel."
Alternatives: "it's holiday" or "it's break time."
Exact(13)
It's vacation".
Hey, it's vacation.
"When I fly, it's vacation money," Mr. Akana likes to joke.
Now, it's "vacation ownership," a more flexible system but with as many complications as a frequent-flyer plan.
"There's no way I'm going on my summer family vacation and sleeping in a tent for a week," said Mr. Villa, 34, of Middletown, N.J. "I guess because it's vacation, and you're looking for comfort.
But tonight's the last night to make it happen; after Apple closes up shop this evening, it's vacation time for the App Store folks.
Similar(46)
Before it was vacation.
"Thanks to god it was vacation.
It wasn't vacation, but it was vacation from whatever work was already scheduled.
"The kids would come to the desert with mom, and I told them it was vacation," she said.
If a member of the group comes back from a vacation five pounds heavier, group members are sympathetic — It was vacation!
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com