Airbnb has today welcomed the government proposal to streamline tourist tax in the Czech Republic, which will allow home sharing platforms to help contribute to city revenues. Once adopted in its current form, Airbnb is committed to voluntarily collect and remit tourist tax on behalf of its hosts in Prague.
Voluntarily collecting tourist tax on behalf of hosts on Airbnb would simplify the paperwork for hosts, but would also make it easier for Prague to obtain additional income. It would be Airbnb’s first-ever tax remittance agreement in the Central and East European region.
Based on Airbnb guest arrivals of the past 12 months and the proposed local fee of 50 CZK per guest per night on all listing types, automatically collecting and remitting fees on behalf of all hosts could result in over 160 million CZK for Prague.
Airbnb has also sent a letter to other home sharing platforms in Prague to explore an industry-wide approach to ensure Prague receives all of this important revenue.
Vladimir Beroun, Public Policy Manager for CEE at Airbnb said:
“We want to be a good partner for Prague and make our hosts’ lives easier, which is why we want to help in tourist tax collection. We encourage our competitors to follow our lead as automated tax collection is an asset to promote healthy tourism. Thanks to these revenues, Prague will be able to promote local tourism and contribute to attracting travelers out of the main touristic corridors. We look forward to constructive discussions with the new City Council in Prague and other platforms in the coming months.”
Next to helping hosts pay their fair share of tourist tax, Airbnb also aims to work with the other platforms and city hall on responsible home sharing tools that adequately address the current questions raised by hosts, guests and communities in Prague. While Airbnb has always led the industry in responsible home sharing practices, it is important that all players are on board to ensure the same practices apply to everyone, independent of which platform.
Across the world, Airbnb has worked together with governments to make tourist, hotel and occupancy taxes simple, and has collected and remitted more than $700 million in tourist taxes on behalf of hosts in more than 400 jurisdictions. We know hosts care deeply about their cities and want to contribute financially and Airbnb is proud to lead the industry on this matter and ensure governments receive this important resource.