Skift Take
This collection and remittance is separate from Airbnb’s tax settlement of $620 million with Italy in December 2023.
A new Italian law requires platforms like Airbnb to collect and remit tourist taxes in Italy. It starts Thursday, February 15, and Airbnb said it will comply beginning with more than 1,200 towns and cities.
Airbnb will be required to determine the tourist tax for qualifying stays, using the local rate in the listing’s location. For instance, in Venice it is €1 ($1.08) – €5 ($5.39) per night. In Rome, it ranges between €3 ($3.23) to €7 ($7.54) and in Milan, between €2 ($2.15 ) to €5 ($5.39).
“We will automatically collect the amount required for each stay and remit this in full to the local authority on a routine basis, in accordance with local terms,” Airbnb said in a statement.
The company also committed to complying with the new national regulations governing short-term rentals. These regulations include the establishment of a national registration system and will be reinforced by data gathered through EU-wide guidelines promoting home-sharing platforms like Airbnb.
Tax Evasion Claim Against Airbnb
This collection and remittance is separate from Airbnb’s tax settlement of $620 million with Italy in December. That involved the company failing to withhold taxes from landlord’s rental income.
In November, an Italian judge had ordered the seizure of €779.5 million ($836.40 million) from Airbnb’s Ireland unit for alleged tax evasion. The issue involved Airbnb’s alleged failure to withhold 21% of landlords’ rental income and pay it to Italian tax authorities for years 2017-2021.
Italian Premier Giorgia Meloni then committed to tightening measures against tax evasion associated with short-term rentals, with plans to increase the tax rate for owners from 21% to 26%.
Airbnb settled the tax dispute without admitting any liability. The company stated in a financial filing that it does not plan to recover tax withholdings from affected hosts for audited periods (tax years), though it seeks information on hosts’ taxes paid for 2022 and 2023.
The company said that as of the third quarter in 2023, it has generated more than $9 billion in tax revenues for authorities globally. And there will be more to come.
Amsterdam will raise its tourist tax on short-term rentals and hotel rooms to 12.5% in 2024, making it the highest tourist tax rate in Europe. Currently at 7%, the tax is set to rise to 12.5%, resulting in a notable increase in nightly costs for visitors.