Airbnb obliged to provide information to tax authorities, EU court adviser says

BRUSSELS, July 7 (Reuters) – Quick-term lodging providers firm Airbnb (ABNB.O) is obliged to offer data in rental contracts to tax authorities, an adviser to Europe’s prime courtroom mentioned on Thursday, in one other potential authorized setback in Europe for the corporate.

Airbnb has in recent times discovered itself at loggerheads with authorities in a number of European Union nations, arguing that taxation and different necessities contravene the EU precept of the liberty to offer providers throughout the 27-country bloc.

The most recent case includes a 2017 Italian regulation requiring Airbnb and different short-term rental websites to ahead data from their rental contracts and withhold 21% from the rental earnings and pay it to tax authorities.

The corporate challenged the regulation in an Italian courtroom which subsequently sought steering from the Luxembourg-based Courtroom of Justice of the European Union (CJEU).

ECJ Advocate Basic Maciej Szpunar backed the Italian regulation. His opinion is non-binding however the ECJ normally follows 4 out of 5 such suggestions.

“Article 56 TFEU (Treaty on the Functioning of the European Union) in relation to the liberty to offer providers doesn’t preclude the duty to gather and transmit data or to withhold tax,” Szpunar mentioned.

“It’s completely constant to impose the duty to withhold tax on intermediaries concerned within the cost of hire, provided that the exercise of a lot of pure individuals who are usually not topic to the obligations incumbent on professionals is, by its nature, troublesome to audit for tax functions.”

He agreed with Airbnb’s argument in a single side.

“Nonetheless, the duty to nominate a tax consultant constitutes a disproportionate restriction on the liberty to offer providers,” Szpunar mentioned.

Airbnb mentioned: “Airbnb needs to be a great accomplice on tax and we help a constant, standardized strategy to data sharing, which is why we welcome the settlement by EU Member States on a typical tax reporting framework for digital platforms, often known as DAC 7.”

The CJEU will rule on the case in coming months. In April, the courtroom rejected an analogous problem by Airbnb to Belgian regional laws requiring it to offer data to tax authorities on vacationer transactions.

The case is C-83/21 Airbnb Eire and Airbnb Funds UK.

Reporting by Foo Yun Chee; Enhancing by Emelia Sithole-Matarise and Jonathan Oatis

: .