Airbnb has started to email hosts in major markets across Europe to share new resources to help hosts understand their tax obligations and to remind hosts about the importance of paying tax.
The action plan comes after Airbnb launched a collaboration with Denmark earlier this year to simplify income tax via Airbnb, and for hosts to benefit from increased tax-free earnings in return. Last year, Airbnb also worked with Estonia and Spain on innovative measures to make income tax compliance simpler and in Ireland, Airbnb has been working closely with the tax authorities regarding host income reporting obligations.
The measures will help extend the financial benefits of travel on Airbnb to everyone and are being put in place ahead of 2020 income tax filing deadlines for hosts.
The platform company has previously made a number of tools available to help hosts understand and follow local tax rules, including downloadable transaction histories, responsible hosting pages and regular email reminders during tax seasons. To further support hosts, they are introducing free local tax guides, developed in collaboration with independent tax experts. The guides will become available to download across Europe and include relevant information on local taxes, details on how much tax should be paid, and real-life examples and case studies.
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Airbnb is also working to host a number of tax workshops across Europe with independent tax experts in the coming months, and will make a dedicated tax hotline available to hosts, should they have further questions.
The ongoing email campaign to hosts also highlights the importance of following tax rules and reminds hosts that Airbnb can be subject to routine audits to ensure that both Airbnb and hosts are paying the correct amount of tax.
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The company has also already partnered with more than 400 governments around the world to collect and remit tourist, hotel and occupancy taxes, resulting in over $1.2 billion in tax revenues.