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Also, the much higher VAT rate paid by most hotels in the UK compared to most AirBnBs (17% vs 0.6%) is not because AirBnBs are illegally avoiding the tax, but s
by jessriedel 10y ago
Also, the much higher VAT rate paid by most hotels in the UK compared to most AirBnBs (17% vs 0.6%) is not because AirBnBs are illegally avoiding the tax, but simply because most hotels, but few AirBnBs, cross the business-size threshold where the higher VAT kicks in.
- justincormack 10y agoits not a "higher VAT" threshold, you do not have to register for or charge VAT at all if your business earns less than £85,000 (you might want to if you pay out a lot of VAT though). This is unusual in the EU, most countries do not have this exemption I don't think.
- nathanvanfleet 10y agoCanada has the same thing. You have to collect more than 30,000$ in income before you need to collect taxes for it.
- jessriedel 10y agoThanks. Yes, those percentages must be averages, with most Airbnb's paying zero.