Opinion Statement ECJ-TF 2/2023 on Case C-83/21, Airbnb Ireland and Airbnb Payments UK on accessory tax obligations imposed on digital service providers.
- The CFE ECJ Task Force has issued an Opinion Statement on the ECJ decision in case C-83/21, Airbnb Ireland and Airbnb Payments UK.
- The Court found it admissible to impose tax obligations on service providers offering intermediation services regarding real estate located in Italy, including the obligation to collect and report data and withhold tax on intermediated payments.
- However, it held it disproportionate to request the appointment of a tax representative resident in Italy. The case clarified the limits of Member States’ action concerning the imposition of tax-related obligations to non-taxpayers and reaffirmed the inadmissibility of imposing the appointment of tax representatives.
- The Opinion Statement focuses solely on compatibility with fundamental freedoms and does not cover other issues addressed in the case.
- The Court did not further clarify the conditions by which a neutral criterion at face value would amount to factual discrimination.
- The case does not prevent Member States from imposing reporting and withholding tax obligations on platforms operating within their territories, but this may result in thousands of different tax regimes, hindering their capacity to offer their services effectively within the internal market.
- The EU Commission could consider harmonizing these regimes through a directive.
Source CFE
