Providing accommodation via internet platforms

The financial administration published information on the tax obligations of providers of accommodation services via internet platforms such as Airbnb and others. Entities using such services should learn about the possible tax consequences.

In general, providing accommodation is economic activity and thus a potential taxable supply. Entities providing such services can be obliged to register for VAT because of the turnover or to register as a person identified for VAT purposes and pay VAT when receiving electronic services from an agent.

Regarding income tax, there is a strong likelihood that the provider does not receive income from rent but it is income from self-employment activity which means a different method of taxation and different effect on social security and health insurance. The essential thing is the form and length of the accommodation. Subsequently, there is a possible obligation to the electronic registration of sales if the accommodation is paid for in cash or other similar method. The obligation is determined by the specific conditions of the contractual relations between the parties.