Government Amendment Seeks to Maintain VAT Exemption for Airbnb-Type Rentals Amidst Housing Crisis

2023-10-19 17:38:00

Analyse

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An amendment tabled by the government plans to maintain the VAT exemption enjoyed by Airbnb-type rentals. Under pressure in the face of the housing crisis, the government has decided, on the other hand, to attack the “Airbnb tax niche”.

Thanks to 49.3, which allowed the adoption without a vote by the Assembly of the first part of the finance bill for 2024, a tax gift made to Airbnb went completely silent. An amendment, tabled on Sunday evening by the government, just before their submission deadline, will make it possible to extend the VAT exemption enjoyed by rentals of furnished tourist accommodation such as Airbnb, Abritel or Booking. It was the communist senator Ian Brossat, former deputy for housing in Paris, who raised the hare and the brand new elected official promised that he would fight to remove it when the text was presented to the Upper House in December.

Explanation: the tax code provides that rentals of furnished tourist accommodation are exempt from VAT, unless they generate more than 91,900 euros of income. Unlike hotels which are subject to it. However, on July 5, the Council of State judged this exemption contrary to a 2006 European directive, according to which “accommodation operations cannot be exempted from VAT […] carried out within the framework of the hotel sector or sectors with a similar function. This is the case for Airbnb furnished accommodation which is therefore “in a situation of potential competition with hotel companies”.