Israel To Tax Airbnb Apartments

November 22, 2017 | Apartments rented out through Airbnb will face taxation soon,  according to David Shilon, chief coordinator of the Assessment Review and VAT Advisory and Directives at the Israeli Tax Authority, who said this in a panel at a conference organized by The Institute of Tax Consultants in Israel held this week in Eilat.  The report, featuring statements from Shilon and published by Calcalist, says regulation will be posted in the upcoming weeks. According to Shilon, current Israeli tax regulations say a person purchasing a residential apartment does not pay input tax, meaning the apartment can be used as a residence and a rental source of income. While Israel has laws to regulate taxation of businesses running out of apartments that are also areas of living, there is “no local legal framework regulating rentals made via Airbnb or similar platform,” Calcalist reported. For now, there is no word on the amount of taxation to occur. Founded in 2008, Airbnb is a mega-force in today’s sharing economy and a popular and cheaper community alternative to hotels and hostels with apartments for rent around the world.