€779.5 million seized from Airbnb over tax evasion

airbnbDue to alleged tax evasion, the Italian prosecutor has ordered to seizure of over €779 million from Airbnb. The company is accused of failing to collect 21% flat tax from landlords during 2017 and 2021. The law on which the decision was made was contested by Airbnb in front of the European Court of Justice which ruled in favour of the Italian government.  

Authorities on local, regional, and national level around Europe are increasing the regulatory and fiscal pressure on Short-Term Rental (STR) accommodations and platforms. HOTREC has long been calling for a level playing field amongst STRs and other accommodation providers. The EU policymakers are currently engaged in discussions on two important legislative proposals which will further increase competitiveness in the accommodation market. The EU STR proposal will set common rules for host registration and a data-sharing framework with public authorities, while the VAT in Digital Age proposal will require STR platforms to collect and remit VAT to tax authorities. HOTREC’s position papers on these EU proposals are available here and here.

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