Airbnb to collect and remit taxes for hosts in Paris

25 Aug 2015 | Author: | No comments yet »

Airbnb Agrees to Collect Tourism Tax in Paris, Its Biggest Market.

Airbnb has announced it will begin collecting tourist tax in Paris, the most popular city for home sharing on its platform, starting from October 1 — after which the remittance collection will be gradually expanded to cover the other cities where the platform operates in France.Airbnb is making good on its promise – announced at a splashy press conference in March–to collect tourist taxes in Paris, part of its ongoing effort to woo authorities in France and elsewhere.As of Oct. 1, Airbnb will begin automatically collecting the tourism taxes from guests and remitting them directly to the Parisian City Hall on behalf of hosts, the company announced today. From the hosts point of view, the change will mean hosts no longer have to collect and remit tourist tax themselves, removing a little friction which might have discouraged Parisians from listing their home.

It has also agreed tax remittance schemes in San Francisco, Portland, Philadelphia, Chicago, Malibu, San Jose, San Diego and Washington D.C. “Figuring out how the different tax rules apply can be a challenge and we’re moving forward quickly and carefully,” an Airbnb spokesman told TechCrunch. “This isn’t a matter of merely flipping a switch and it takes time, but, as you can see, we’re committed to expanding this program.” Airbnb’s measured tones and careful approach to working with policymakers invites a contrasting comparison with ride sharing firm Uber’s brash operational style. But as The Wall Street Journal reported in June, the company still faces concerns over the income taxes hosts owe and whether its fast growth is luring professional home-renters and squeezing out local residents. More from WSJ.D: And make sure to visit WSJ.D for all of our news, personal tech coverage, analysis and more, and add our XML feed to your favorite reader. But the latter’s less incendiary tone has presumably helped prevent tensions from rising a la Uber — even as the latter’s gun-ho tactics in seeking to railroad through local opposition have generated far more political heat. Travelers can rent accommodations through Airbnb for much less than they can book a hotel room, and that’s hurting the French hotel industry big time.

Albeit, the really big difference is more likely that Airbnb’s business is demonstrably generating local tax revenue which individual cities can benefit from.

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