The tax authorities demand the expulsion of goods from platforms such as Airbnb

The tax authorities demand the expulsion of goods from platforms such as Airbnb

Mass evictions of landlords tax requests from short-term press rental platforms Airbnb. These are owners who have been identified as evading tax or failing to meet their broader obligations to the law.

Already the Independent Public Revenue Authority (AADE) asked digital platforms Airbnb Ireland UC, BV, VRBO Expedia Group Vacation Rentals Ireland Limited deactivate a total of 17,612 real estate advertisements, because they did not have a real estate registration number (RMA) or the AMA entered electronically was not valid. Emails have also been sent to luxury villa management sites for compliance with relevant domestic legislation. They have a series of owners who operate practically like hoteliers and have not told the Tax office the total rent received.

From the first round of intersections (between the platforms and the Tax Office) 73,000 cases of tax evasion were detected that they were asked to declare 102 million euros.

Recently in the nets of the tax control mechanism 200 villas in Mykonos have been seized which were rented via a short-term rental platform without papers and without having been declared to the tax authorities, while a hotel in Meteora “forgot” to declare an income of 1.3 million euros.

These cases concern undeclared income identified for the period 2018-2022. THE Tax office it again initiates cross-checking from tax declarations, data from platforms but also movements on bank accounts.

In addition to the tax and surcharges, owners who have not complied with the provisions of the law are threatened with fines of up to 20,000 euros! Sanctions are specific to:

■ Lack of registration in the register of short-term accommodation.
■ Concealed mention of the registration number in the short-term land register when displaying the property on digital platforms, as well as on any other display medium.
■ Non-obvious mention of the Special Operating Sign (ESL) number in the display of the property on digital platforms, as well as in any other means of display by the managers for which there is no obligation Short Term Register of Accommodation Properties. The fine provided for each offense is 5,000 euros, doubled (10,000 euros) for the second offence. For each subsequent offence, starting with the third, in the same year, the fine is four times greater than that initially imposed, ie 20,000 euros.

Automatic evictions

From this year things change too IRS won’t wait to get data from platforms en masse to hunt down tax evaders. The evictions will be carried out automatically by the platforms which (based on the new agreement) will inform the tax authorities in real time of the income declared and what is behind each registration number.

The fact that the taxable turnover of short-term leases of the type Airbnb went from 62 million in 2018 to 530 million euros in 2022!

So this is the relationship of the tax authorities with short-term rental platforms changes again with new updated memorandum that the Independent Public Revenue Authority will sign with short-term rental companies. The data that will be sent at a faster rate will be fully processed by the platforms, knowing in advance who gives a fake real estate registration number. All the data that will be collected by the audit mechanism will also contribute to simplifying the tax system.

Thus, the control mechanism of AADE may, at any time, check the entries in the electronic register of each platform and to automatically cross-check them with the data of the leases and income declared in Tax office. In other words, it will be checked whether there is for the specific property a long-term lease agreement in the electronic property register or a short-term lease registration on rental platforms. Subsequently, the amounts declared in the taxis of the tax administration will be compared with the bank remittances with which the owners are paid, since the AADE will also have included in the control system the payment remittances sent by the tenants.

The new statements

AADE’s auditors are also awaiting this year’s tax declarations to identify even more cases of hidden income rental of real estate. These checks will start from July 1 and in addition to the income of the previous year, the auditors through “intelligent” tools will search the data of the platforms each month in order to identify those who avoid declaring the reservations and the income that ‘they obtain in the Real Estate Registry Short-term residence of the AADE.

It is specified that for the syndic to be able to carry out short-term leases, he must:

A) Register with their personal Taxisnet codes in the register of short-term accommodation properties maintained on the website, in order to register the property and obtain a Property Registry Number (RMA). Registration is by Leased Property.

b) Display the Property Registration Number (PRN) on sharing economy digital platforms, as well as on all media. The income of Airbnb is taxed according to the rental tax scale, i.e.:
■ For income up to 12,000 euros, with a rate of 15%.
■ For incomes of 12,001 to 40,000 euros, with a rate of 35%.
■ For income of 40,001 or more, with a rate of 45%.

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