Streamlining VAT for Short-Term Rentals: Ministers discuss platform roles as HOTREC calls for swift action

On June 16, 2023, EU ministers of finance engaged in a discussion regarding VAT in the Digital Age package. As part of the package, the European Commission proposed implementing a deemed supplier model for Short-Term Rental (STR) platforms, which would require them to collect and remit VAT to tax authorities.

Overall, the discussions revealed that the majority of Member States recognize the importance of involving online platforms in VAT collection, although they disagreed on the specific approach.

For nearly a decade, HOTREC has been closely monitoring various issues concerning Short-Term Rental accommodations, including unreported taxable income. The absence of regulations not only affects competitiveness but also impacts the generation of public revenue, which should be equitably distributed among different businesses. This includes STR hosts who currently generate significant income without paying VAT. HOTREC strongly urges Member States to support the Commission’s proposal and ensure the swift adoption of new rules that will compel short-term accommodation platforms to collect and remit VAT to tax authorities. Learn more about our position here.