According to the Financial Administration, letting out rooms or apartments through Airbnb falls under the category Provision of Accommodation Services (i.e. self-employed activity as according to § 7 of Act on Income Tax) and not lease as according to § 9. The Financial Administration also said that it is in fact an undertaking of economic activity also for the purposes of the Act on VAT.

As a taxpayer with income from self-employment you have the obligation to register for tax from income of natural persons at a tax office and in most cases to file a tax return form, too. A provider of accommodation services with a licence to trade can apply a lump-sum expenditure of up to 60% in the tax return. If the provides does not have a corresponding licence to trade (which is illegal according to the Financial Administration), he or she can apply expenditure through percentage of income of up to 40%.

Categorizing this income as income from self-employment as according to § 7 of Act on Income Tax means that the obligation arises to pay social and health insurance levies from it.

For providers, who are not yet registered as taxpayers, these payments enter the calculation of statutory turnover for compulsory registration to VAT. If the provider of accommodation services is already registered to VAT, the services provided should be included in the standard taxable payments claimed in the VAT return.

If the Airbnb company (non-domestic) supplies electronic services (such as service fees for using the online platform), its recipient is obliged to pay VAT on this service in this country. If the recipient is not registered to VAT they are obliged to do so because they receive this service as the so called identified person.

Some other obligations can arise in connection to provision of accommodation services:

• registration with alien police and reporting foreigners if you are providing accommodation to foreigners
• payment of local fees
• e-sales obligations