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Airbnb pays €1.2 million in tax to Paris authorities

Accommodation rental business Airbnb paid almost €1.2 million in tourist tax to Paris city authorities during the final three months of 2015, Agence France-Presse (AFP) reported08 Feb 2016

Airbnb said in August that it had reached an agreement with French authorities on collecting the tax through its platform via a "fully automated process". It would start charging tax in Paris from 1 October, and then extend this to other cities across France, it said at the time.

The move came after the French government published a decree demanding that internet platforms take on this role. Previously, people renting out their homes to others were expected to collect the tax and send this to the authorities themselves.

Since October last year, Airbnb has been adding a €0.83 tax item per person, per night, to bills for “meublés touristiques non classés”- unclassified tourist homes​.

The tax paid in the last three months of 2015 corresponded to 1.4 million overnight stays over the period, the Paris municipality said, according to the AFP report.

Airbnb's payment of tax follows the introduction of the Bill ALUR in France in 2014, which simplified the legal rules around home sharing in France. 

Airbnb collects and remits hotel and tourist taxes on behalf of its hosts in San Francisco and Portland, and is working on similar initiatives with authorities in Amsterdam, Philadelphia, Chicago, Malibu, San Jose, San Diego and Washington DC, it said in August.

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