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Airbnb to pay Italy half a billion Euros in tax dispute
Global short-term rentals platform Airbnb will pay Italy over half a billion Euros to settle a tax dispute.
Airbnb has agreed to pay Italy’s tax authorities €576 million (£496 million).
The amount relates to tax receipts Airbnb failed to collect from Airbnb hosts renting out their rooms, apartments and houses on the platform.
Owners are required to pay 21% tax on short term rental earnings.
The settlement is about three-quarters of the total tax revenue owed.
Airbnb said it will take the financial hit itself and won’t push Airbnb hosts to pay the tax.
The alleged tax evasion covers the 2017-21 tax years.
Airbnb has been operating in Italy for 15 years.
Last year Airbnb challenged the requirement to withhold 21% of rental income earned by landlords.
The EU Court of Justice ruled against the company.
Italian prosecutors said Airbnb failed to collect taxes on gross rental income of €3.7 billion.
Italy is also planning to raise the tax from 21% to 26%.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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