Taxation of Short-Term Rentals via Online Platforms: A Comparative Analysis of Leading EU Tourism Markets

Purpose: The purpose of this study is to evaluate and compare the national tax policies of the leading European tourist countries concerning taxation on short-term rentals through online platforms. Reviewed are the different taxation systems of the most developed tourist markets in the EU and their readiness to implement the Directive on Administrative Cooperation (DAC7) to achieve transparency on revenues earned by entrepreneurs utilizing digital platforms.Methodology: Collected is information from the tax authorities in Austria, France, Spain, Italy, Germany, Greece and Portugal regarding the tax rates applied on short-term rental properties (STRs). Reviewed are the current policies applied in the different countries for reporting and collecting taxes on STRs offered through online travel agents (OTA) in the EU.Results: Despite the various and even quite complex systems for taxing the income from STR of different properties, the application of the DAC7 for the control of income from such activities is well accepted by European countries. Some of these countries apply even stricter and easier methods for collecting taxes from STR on OTAs.Research limitations: It will be useful for the completeness of the study to expand its scope and include all member states of the European Union.Originality: A good number of articles are published focusing on the implementation and specifications of the Directive on Administrative Cooperation (DAC7) but they do not review the actual taxing rates of the main touristic markets in the EUKeywords: DAC7, Taxation, OTA, STRDOI: 10.58869/EJABM11(2)/06