Trust Bloomberg Tax's Premier International Tax offering for the news and guidance to navigate the complex tax treaty networks and business regulations.
By Rick Mitchell
A draft amendment to a budget bill in France’s National Assembly would “discriminate” against online rental sites including Airbnb inc. by hitting them with a targeted tax of up to 5 percent of daily rental values, a national association said.
Joel Giraud, rapporteur general to the National Assembly’s budget committee, posted a Nov. 23 report on his official website that said he plans to propose a measure allowing local governments to tax Airbnb rentals from 1 percent to 5 percent of daily rental amounts, beginning next year. The proposal would amend the second 2017 revised budget bill, which the committee is discussing ahead of consideration by the full assembly later in the month.
Giraud’s draft amendment proposal comes as hotels have been pushing for a government crackdown on alleged violations by Airbnb of regulations in the tourism sector. The rapporteur has contended that practices by landlords on Airbnb and French site Abritel-HomeAway side-step an existing tax on tourist lodging.
Airbnb declined to comment.
A Nov. 24 email statement provided to Bloomberg Tax by the National Union for the Promotion of Vacation Rentals (UNPLV), which includes Airbnb and French site Abritel-HomeAway, said the tax proposed in Giraud’s draft amendment would distort competition in the tourism sector. It “profoundly discriminates against furnished rentals to the benefit of hotels” and will hurt the “attractiveness” of France as a tourist destination, it said.
Under France’s existing visitor’s tax on hotel stays—which is calculated based on the number of stars a hotel has—a stay at a five-star hotel is taxed at about 3 euros, while a stay at a one-star venue is taxed at 55 centimes, depending on the number of adult guests. Giraud has said Airbnb landlords get around this system because most of them don’t include a star rating in their listings.
The UNPLV said that if the draft amendment text became law, “travelers who reserve a simple furnished apartment would be taxed at 5 euros per night, the same amount as for a four-star hotel.”
The proposal contradicts President Emmanuel Macron’s vow to simplify standards and procedures, because it would allow local communities to apply different taxes. “It would undeniably complicate local taxation,” and “arbitrarily increase differences in treatment of vacationers” from one place to another, the union said.
By contrast, the union said it favors an automatic collection of a fixed-rate visitor tax by all platforms and internet sites for renters of vacation lodging.
Giraud is a member of President Emmanuel Macron’s La Republique en Marche party, whose majority in the National Assembly has allowed it to easily pass various tax and employment measures since Macron came to power in May.
The government presented its second revised 2017 budget bill on Nov. 15. The first 2017 budget revision passed Parliament on Nov. 14. That bill forces large businesses and multinational groups to pay a one-off “contribution” to help cover a multi-billion euro budget gap stemming from an October ruling that voided a controversial tax on dividends.
To contact the reporter on this story: Rick Mitchell in Paris at firstname.lastname@example.org
To contact the editor on this story: Penny Sukhraj in London at email@example.com
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)