Since January 1, 2025, a small tax revolution has been quietly creeping into your Airbnb bookings: VAT has officially joined the party. Whether you’re a host, traveler or just curious, don’t panic: we’ll explain everything with a smile. 🧳💼
What is this “new” Airbnb VAT?
You’re probably familiar with VAT (value-added tax). It applies to most of your everyday purchases… and now it also applies toAirbnb‘s intermediation services. How does it work? Airbnb now charges 20% VAT on its service fees in France.
This doesn’t mean that the total price is skyrocketing, but it does mean that users, especially guests, will have to pay a little extra.
Why the change now?
Airbnb, like other collaborative economy platforms, has until now been relatively unaffected by certain tax obligations. But European legislation has become tougher, and France has followed suit. The aim? To harmonize the tax treatment of platforms and reduce distortions of competition with tourism professionals.
As a result, Airbnb must now collect and remit VAT on its commissions… just like any other French company.
What's new for guests
Previously, the service charges levied by Airbnb on each booking were not subject to VAT. Today, they are, and this can represent an indirect additional cost for hosts.
Case in point:
- Before: You rented your studio for €100, Airbnb charged €3 (3% fee), and you received €97.
- Now: Airbnb charges €3 + €0.60 VAT (20%), so €3.60. You receive €96.40.
📌 Don’t panic: you don’t need to take any administrative steps. Airbnb takes care of everything. But that’s good to know for your profitability calculations!
And for travelers?
As far as travelers are concerned, nothing dramatic either. The service charges paid by tenants are also subject to VAT. So if you find that the bill is a little higher, it’s not your host’s fault, but Lady VAT.
Clearly, the platform displays the price inclusive of all taxes, so there are no nasty surprises… except perhaps when you click on “Pay now”.
What does this mean for the short-term rental market?
With this tax regularization, Airbnb is moving a little closer to the professional accommodation model. This could :
- Encourage some small hosts to think about their profitability.
- Promote greater tax transparency.
- And perhaps, in the long term, reduce Airbnb’s attractiveness in certain highly competitive areas.
But don’t panic: for the vast majority of occasional guests , this remains an administrative detail, not a Copernican revolution;
Things to remember
Since January 2025, Airbnb has been charging 20% VAT on its service fees.
This affects hosts AND travelers, but without any additional steps.
The amounts are still reasonable, but you should factor them into your calculations.
Airbnb continues to manage collection and payout, like a big guy.
In conclusion (with a smile 😄)
Airbnb VAT isn’t really a bad surprise, it’s just taxation adapting to our digital age. As the tax proverb goes, “There are two inevitable things in life: death and taxes.” So you might as well take it with a sense of humor… and a good rental strategy.
Want to know a little more about the AIRBNB platform? Take a look at our article on taxe d’habitation and Airbnb rentals: are you (finally) exempt?