- Italian tax authorities are investigating Airbnb for tax evasion, seeking around €500 million in unpaid taxes related to Italy’s tax regime for short-term rentals.
- The regime, which came into effect on June 1, 2017, requires income from short-term rentals to be subject to a flat tax rate of 21%.
- Professional landlords are responsible for paying the tax, while non-professional hosts or property owners who rent out their properties are required to have intermediaries like Airbnb withhold and remit the tax.
- Airbnb previously challenged the regime, but the Court of Justice of the EU upheld it in December 2022.
Source Orbitax
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