Even Airbnb in the crosshairs of the taxman: half a billion in taxes asked
“Airbnb ends up in the crosshairs of the Italian taxman who has challenged the short-term rental platform for a failure to pay taxes for 500 million euros”. La Stampa writes it, underlining that it is the “highest figure ever asked of an internet company after the 870 million VAT disputed at the beginning of the year against the Meta group: the giant that controls Facebook, Whatsapp and Instagram”.
Again according to La Stampa, “a 2017 law requires web platforms – such as Booking and Airbnb itself – toi act as withholding agent by directly withholding 21% of the rents collected by hosts. A norm to which the group has always opposed. Arguing, moreover, that the law was in conflict with European law. A position – at least in part – denied by the Court of Justice of the European Union which in a sentence last December rejected Airbnb’s appeal on the Italian tax regime arguing that the law may ask to collect information and data on the rentals made, and above all to apply the withholding tax at source provided for by the national tax regime”.
La Stampa summarizes: “The company does not have a tax representative in Italy who can act as a withholding agent. The Court of Justice of the European Union has clarified that the obligation to designate a tax representative in Italy is in contrast with European law. Pending the final decision by the Council of State, we will continue to implement the EU directive on the matter”. However, Italy broke the delay and made its request”.
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