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".
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