France: Collaborative Platform Declaration Changes (Airbnb)

French authorities have recently announced a change in law with regard to income declaration for collaborative platform users. This is of particular interested to our Anglo-French clients who rent property online.

The French National Assembly gave the go-ahead on the 5th December to an amendment of a bill, which will oblige online platforms to send automatic declarations of the income of their users to the fiscal authorities.

The amendment will be applicable to all platforms regardless of their ‘nationality’ or sector of activity. This obligation will however only enter into force in 2019.

The collaborative platforms are already, since 1st July 2016, obliged to inform their users of the annual revenue they have earned, in order to assist with calculations for declarations.

Users of sites such as Airbnb, Leboncoin, Drivy and other collaborative platforms will now no longer be able to escape the declaration of their income as goods or services sold on these platforms will be automatically declared by the platforms to the authorities.

This latest amendment comes shortly after other reforms whereby the online collaborative platforms have been required to start collecting and declaring Taxe de Séjour direct to the town authorities (in certain prefectures).

In addition to the above income declarations, individuals are also now to be subject to paying social contributions when rental income on goods or services via collaborative platforms goes beyond a certain income threshold. For the rental of apartments an individual will have to report their activity in excess of EUR 23,000 in annual income by joining the Social Regime of Independents (RSI), and paying the social contributions. For the rental of movable goods (cars, boats, lawn mowers etc), the threshold is EUR 7720.

These succession of changes within this booming market are the French Government’s attempt to tighten up tax collection, which, in the main sectors is estimated to be worth EUR 28 million a year within Europe. It is further estimated the value of transactions in this sector could be multiplied by 20 in ten years.

For the full, original article and a simple video (in French), see:

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