Digital Platforms and Local Tourist Tax in Slovakia as Seen by Accommodation Providers

The authors focused on local taxation in Slovakia, specifically local tourist tax on short-term accommodation in light of lately changed legislation involving digital platforms like Airbnb or booking.com, which already play a significant role in tourism and accommodation reservations, into the process of tax collection. The article presents the results of a questionnaire survey focused on the views of accommodation providers, digital platforms and their role in the provision of their services, as well as the local tourist tax applied in Slovakia in the form of accommodation tax. The authors found out that 80% of the respondents believe that the use of electronic platforms increases the number of guests and profit from the accommodation, but, surprisingly, more than half (55%) of the hosts were unaware of the possibility of remitting the tax via the platforms, while more than a third (36.1%) would use this option. This is relevant regarding the fact that these respondents rated the Slovak accommodation tax system as problematic (claiming excessive administrative burden, complexity and frequent changes in legislation, and lack of information). Nevertheless, other respondents also rated the current system negatively, which may be a factor contributing to the tax gap. Based on the findings, it was concluded that the involvement of digital platforms in collecting tourist taxes could be beneficial for the hosts and local self-government. The main conclusions include suggestions for tax administrations and legislators in this context.