Airbnb Users Face Surprise Tax Bill in Ireland

August 11, 2015 Taxation in Ireland

DUBLIN – Airbnb hosts will be paying back taxes as the site has shared information about its users with the tax authority in Ireland.

The international accommodation provider website Airbnb has begun to send letters to users in Ireland informing them that they could be facing retroactive tax charges for income earned for houses and rooms that they had let out since mid-2014.

The website is required to provide details of its user’s earning to the tax authority of Ireland, as currently the businesses is headquartered in Ireland.

Previously, experts and users of the website believed that they qualified for an exemption which allowed the first GBP 12 000 of income from room rentals to remain tax free, however, the government has recently clarified that the threshold is not applicable for incomes from short term leases “…including where such accommodation is provided through online accommodation booking sites”.

Airbnb users who have earned more than EUR 33 800 will face a tax of 40 percent on earnings from letting their rooms and houses through the site, while those with profits below the threshold will be taxed at 20 percent.

Photo By: Jimmy Harris