Today, we have announced that Airbnb will begin collecting and remitting tourist taxes on behalf of hosts in seventeen more cities across France.
From 1 August 2016, Airbnb will be automatically collecting tourist tax on behalf of hosts when guests make a booking in the following cities:
- La Rochelle
The addition of these cities now means that Airbnb has simplified the collection of tourist tax for hosts in 19 cities across France, including Chamonix-Mont-Blanc and Paris, where Airbnb started to collect last year. In total, these cities represented over 50% of bookings by Airbnb guests in France last year.
In the first three months from October 2015, Airbnb remitted €1.2 million of tourist tax to the City of Paris, and in the first five months from 1 August 2015 remitted €40,000 on behalf of hosts in Chamonix-Mont-Blanc.
Although home sharing on Airbnb has always been subject to tourist tax in France, the current process requires hosts to collect the tax from each guest individually and to remit this directly to each municipality. Last year, the French Government published new rules allowing platforms such as Airbnb to take on the administrative burden for this process on behalf of hosts across France.
“We’re pleased to be able to continue to implement this fully automated and streamlined approach for more hosts across France, making it even easier for our community to pay their fair share” said Nicolas Ferrary, Director of Airbnb in France. “Over half of all Airbnb guests to France visited these cities last year. By working closely with French Authorities, we’ve been able to roll out simplifying tourist tax, ensuring those cities receive more revenue from our community to further develop tourism in their regions.”
For reservations made on or after August 1, 2016 in the eighteen additional cities, guests will see a line item for tourist tax. This amount includes the city imposed tourist tax and the administrative district tax when applied. The tax will be added to the total amount paid by guests on all stays and will be remitted directly to the City Halls by Airbnb. The host will no longer have to work out tourist tax for each individual reservation or remit it themselves. Hosts will receive further information on this collection at the beginning of July.
Just the beginning
There are Airbnb hosts in over 17,000 communes across France. Following the 19 cities this summer, Airbnb will be looking to roll out tourist tax to more cities from 2017, when the French Administration identify those that are applicable, helping spread the benefits of tourism even further.
Since the first agreement of this kind in 2014, Airbnb has collected over $175 million in hotel, tourist and occupancy taxes in 220 jurisdictions worldwide. In some cities, this is a significant new source of tax revenue, and one that is likely to only grow larger as the Airbnb community continues to grow.