EU court rules Airbnb must provide rental information to tax authorities and withhold tax

BRUSSELS, Dec 22 (Reuters) – Short-term accommodation services company Airbnb (ABNB.O) must provide information in rental contracts to tax authorities and withhold tax under a national tax regime, the European Union’s highest court ruled on Thursday.

The decision follows a challenge by Airbnb to a 2017 Italian law requiring Airbnb and other short-term rental sites to report information from their rental contracts to tax authorities and to withhold 21% of rental income and to pay them to the tax authorities. .

The company challenged the law in an Italian court, arguing that the taxation and other requirements violated the European principle of freedom to provide services in all 27 countries.

The Italian court then sought advice from the Court of Justice of the European Union.

“EU law does not exclude the obligation to collect information or to withhold tax under a national tax regime,” the EU court said in a statement.

“However, the obligation to appoint a tax representative constitutes a disproportionate restriction on the freedom to provide services,” he said.

Reporting by Jan Strupczewski; Editing by Emelia Sithole-Matarise

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