Airbnb is facing a deadline to send data to French tax authorities over a law that compels marketplaces to provide revenue and other company information to the country, according to a report by Bloomberg.
The French market is worth $2 billion for the company, and is Airbnb’s second-largest market outside of the United States. The company offers villas in Provence, as well as apartments on the Champs-Elysees.
Airbnb charges up to 20 percent on rentals, and sales in France have been rising. More people are taking advantage of the company’s rentals in rural areas as well.
Tax collectors will compare Airbnb’s numbers with its hosts to ensure that everything is legal and that there aren’t any discrepancies.
France has been taxing Big Tech companies under the stewardship of President Emmanuel Macron, but the move has been controversial. There has been pushback from U.S. President Donald Trump, who has threatened to place tariffs on French goods like wine and cheese. The threat forced Macron to suspend the taxes.
Airbnb said it gave between five and 10 million euros before the taxes were frozen.
Another law says that Airbnb must give local governments information about housing, such as the number of guests staying and the names and addresses of hosts. Both Paris and Bordeaux have requested information under the new regulations. In addition, Airbnb has to pay tourist tax, which it said cost 58 million euros last year, double the amount from 2018.
”We are seeing a net loss of nearly 30,000 homes with the tourist-furnished rental platforms,” said a spokeswoman for the Council of Paris. “Airbnb threatens the soul and identity of a number of neighborhoods. We cannot remain inert in the face of this situation. Every major city in the world is facing this problem.”
One host said the city is not going about the procedure in the right way. “The Paris city wants to make hosts responsible for their failure to [manage] the housing market in the city. Airbnb must show them wrong, and only showing data will prove it,” said Christine, 63, who rents a room in her private home in Paris’s 11th arrondissement.