Airbnb and its competitors will be under greater scrutiny. This is expected to bring up to 850 million extra a year to the state and municipalities.
In mid-July, the government approved an amendment to the Tourism Act, which tightens the conditions for providing accommodation through Airbnb, Booking and other platforms that act as an intermediary between the accommodated person and the accommodation provider. The change comes in response to the fact that, according to the Ministry of Regional Development's calculations, up to 70% of such stays can go unreported, causing municipalities to lose local taxes and the state to lose hundreds of millions in tax collections.
According to the ministry's estimates, the state loses up to CZK 792 million a year in taxes, and municipalities also lose CZK 54.9 million each year in residence fees because the regulation of accommodation platforms such as Airbnb has not yet been properly set up and enforced.
The Ministry of Regional Development itself, which is responsible for regulation, admits that the previous measures are not effective. Although accommodation platforms have been obliged to disclose information about landlords for a few years now upon request from the trade authority, the ministry admits that in most cases this does not happen. Platforms prefer to risk administrative penalties, which they can easily avoid due to the fact that they are based abroad and have no confiscable assets in the country.
Guest registration will be required through the e-Turista portal
The current amendment, on the other hand, mainly targets landlords themselves and obliges short-term accommodation providers to register guests through the e-Turista portal. They will receive a registration number for each accommodation establishment for this purpose. Without the use of the register and the registration number, it will not be possible to legally accommodate guests in short-term rentals.
Accommodation providers who do not comply with the obligation to report guests may be fined up to CZK 100,000 in administrative proceedings. The platforms themselves are to face a fine of up to ten million crowns if they fail to comply with the obligations arising from the amendment.
The amendment responds to the change in the use of Airbnb, which is no longer just for renting out a spare room or bed, but thousands of people run it as a business. The fact that these people are indeed entrepreneurs was already confirmed by the Municipal Court in Prague in 2021. Therefore, they need a trade licence, they must pay taxes according to the Income Tax Act, and the income from providing accommodation is also subject to health and social insurance contributions.
The amendment will affect all operators of Airbnb apartments, of which there are over 12,000 in Prague alone, according to current data from Airdna.
jan.tucek@bdo.cz
In mid-July, the government approved an amendment to the Tourism Act, which tightens the conditions for providing accommodation through Airbnb, Booking and other platforms that act as an intermediary between the accommodated person and the accommodation provider. The change comes in response to the fact that, according to the Ministry of Regional Development's calculations, up to 70% of such stays can go unreported, causing municipalities to lose local taxes and the state to lose hundreds of millions in tax collections.
According to the ministry's estimates, the state loses up to CZK 792 million a year in taxes, and municipalities also lose CZK 54.9 million each year in residence fees because the regulation of accommodation platforms such as Airbnb has not yet been properly set up and enforced.
The Ministry of Regional Development itself, which is responsible for regulation, admits that the previous measures are not effective. Although accommodation platforms have been obliged to disclose information about landlords for a few years now upon request from the trade authority, the ministry admits that in most cases this does not happen. Platforms prefer to risk administrative penalties, which they can easily avoid due to the fact that they are based abroad and have no confiscable assets in the country.
Guest registration will be required through the e-Turista portal
The current amendment, on the other hand, mainly targets landlords themselves and obliges short-term accommodation providers to register guests through the e-Turista portal. They will receive a registration number for each accommodation establishment for this purpose. Without the use of the register and the registration number, it will not be possible to legally accommodate guests in short-term rentals.
Accommodation providers who do not comply with the obligation to report guests may be fined up to CZK 100,000 in administrative proceedings. The platforms themselves are to face a fine of up to ten million crowns if they fail to comply with the obligations arising from the amendment.
The amendment responds to the change in the use of Airbnb, which is no longer just for renting out a spare room or bed, but thousands of people run it as a business. The fact that these people are indeed entrepreneurs was already confirmed by the Municipal Court in Prague in 2021. Therefore, they need a trade licence, they must pay taxes according to the Income Tax Act, and the income from providing accommodation is also subject to health and social insurance contributions.
The amendment will affect all operators of Airbnb apartments, of which there are over 12,000 in Prague alone, according to current data from Airdna.
jan.tucek@bdo.cz