Israel Seeks To Tax Airbnb Hosts Through The Company’s Website

December 20, 2017 | The Israeli Tax Authority is currently in negotiations with Airbnb for a retention tax stipulation that will allow the platform to tax hosts in Israel directly through the Airbnb website, Israeli business daily Calcalist reported. According to the proposal, Airbnb will “collect income tax on any payments to Israeli hosts,” Calcalist reported, which will “negate the possibility of tax evasion and neutralize at least some of the discrimination claims brought forth by traditional paid-lodging businesses.” While Airbnb does collect tourist tax in certain major cities, many countries, like Israel, do not want to give the online lodging marketplace or it renters leeway in taxation. Israel’s intention to tax Airbnb was announced last month by David Shilon, chief coordinator of the Assessment Review and VAT Advisory and Directives at the Israeli Tax Authority. Airbnb was founded in 2008 to offer popular and cheaper community alternative to hotels and hostels with apartments for rent around the world.