EU Court rules for Italy, against Airbnb in tax case

(ANSA) - ROME, DEC 22 - The Court of Justice of the European Union said Thursday that it has ruled that a 2017 Italian law establishing a new tax regime for short-term property rentals outside a commercial activity does not breach EU regulations.
    The Airbnb group had brought an action seeking to halt implementation of the new tax regime.
    The law established that owners and property intermediaries must withhold 21% of the amount of rents and pay it to the Italian Treasury.
    The court ruled that this is fine as EU law does not preclude the requirement to collect information or to withhold tax under a national tax regime.
    However, the court said that an obligation in the law for non-resident property-service providers who do not have a permanent establishment in Italy to appoint a tax representative was illegitimate.
    It said this "constitutes a disproportionate restriction on the freedom to provide services". (ANSA).