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Why the European Court of Justice rejects Airbnb

Why the European Court of Justice rejects Airbnb

Airbnb has challenged a Belgian regional law that provides for certain data relating to the transactions of tourism establishments to be transferred to the tax administration. This is why the European Court of Justice rejected Airbnb’s appeal

Airbnb has sued Belgian regional legislation that requires it to provide tax authorities with information on tourism transactions.

This morning the Court of Justice of the European Union rejected the appeal.

here because.

European Court of Justice ruling

The regional Belgian law that requires providers of real estate brokerage services and, in particular, managers of an electronic platform for accommodation services, such as Airbnb, to transmit certain data on tax administration, does not conflict with EU law. Tourist transactions services.

this was to rule From the European Court of Justice in relation to the objection submitted by the accommodation services company.

What AIRBNB supports

Airbnb argued in its appeal that the requirement violated the principle of freedom to provide services.

Why AIRBNB got it wrong

However, the Court of the European Union stated that the request of the Belgian authorities “does not interfere with the freedom to provide services in the Union” and also stipulated that the provision of regional legislation that requires the Director to transmit certain data about the establishments of tourist accommodation that have a financial tax. Nature is thus excluded from the scope of the E-Commerce Directive.

In today’s ruling, the EU Court also found that “the obligation to provide certain information relating to the operations of tourist facilities with respect to all real estate brokerage providers is not discriminatory, but only obliges the relevant service providers to maintain data on the operations of tourist facilities and transfer it to the Regional Tax Administration at the latter’s request.” “.

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what is happening now

Now, it is up to the national judge to resolve the case in accordance with a ruling which the EU court says “equally binds other national judges who are presented with a similar problem”.

An Airbnb spokesperson, interviewed by the Irish newspaper RteHe said the company had taken note of the ruling and that the case would now be returned to the Belgian Constitutional Court.

Airbnb’s reaction

“Airbnb is a good partner in data and tax sharing, and we have already welcomed the agreement of EU member states on the Common Tax Reporting Framework for Digital Platforms known as DAC 7,” he commented. Rte official speaker.

He then added: “We look forward to the implementation of this directive, which will provide a more coherent and standardized approach to information sharing across the EU.”

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