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Money Matters and Legal / In Law

Airbnb in France: Platform will now Collect Holiday Tax from Users in 50 Cities

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Until now, Airbnb in France has only levied the taxe de sejour – holiday tax – on those making bookings in Paris. All this will change from May 1 when the tax will be extended to 50 major cities. 

The move to spread this tax to the restn of France comes after protracted legal suits against the platform brought by established industries. The hotel lobby and other groups competing with the Californian platform say that Airbnb contributes to an uber-ization of society, hurting established businesses that cannot compete with ew technologies.

A press release from the platform confirmed the move, announcing a “solution, through collaboration with local authorities, for the automatic collection of the holiday tax which will spread to 50 communes from May 1.” The holiday tax is €0.83 per visitor per night, and will now be payable in such tourist destinations as Bordeaux, Marseille and Avignon.

This is not the first ground that the platform has ceded. In December it proposed an automatic 120-day limit on user activity, following suit after London and Paris carried out similar regulatory measures. Before that, it promptly agreed to charge the holiday tax to those visiting Paris, which has brought in significant revenue for the state.

Since 2008, the platform has collected 73 million dollars in Taxe de Sejour levied on its bookings in Paris which has gone towards the public finances. Airbnb in France being the huge market that it is – 65,000 properties listed in Paris alone – this figure is almost one third of the total equivalent taxes Airbnb has collected worldwide on behalf of local authorities.

What will this mean for short-term rental hosts? Not a great deal, as the change to prices is tiny and unlikely to affect demand for the platform. If anything the move is positive: it helps to cement the relationship between the platform and local authorities, and further establishes Airbnb as an integral part of France’s tourism industry.

image: Avignon © Wikicommons

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