Airbnb says Revenue claim on earnings is ‘challengeable’

Airbnb, the holiday lettings agency, has said it believes the Revenue Commissioners’ interpretation of Rent-a-Room tax relief is “challengeable”. The agency, which uses Ireland as a base for non-US transactions, said it believed Revenue was wrong to say hosts could not claim tax relief on bed-and-breakfast earnings.

Airbnb has written to its 9,000 Irish hosts advising them to lobby Minister for Finance for a clarification in the budget. Airbnb wants the Government to clarify that B&B earnings fall within Rent-a-Room tax relief.

Under this scheme those who rent a room in their homes may earn up to €12,000 tax free as part of measures introduced to ease a crisis in student accommodation and housing generally. Earlier this year Revenue guidelines said short-term lets to guests – “including where such accommodation is provided through online accommodation booking sites” – did not qualify for the relief.

Airbnb has commissioned legal and tax experts and claims the advice supports the agency’s position.

Some 100 Airbnb hosts at an invitation-only meeting in Dublin recently were disappointed to find their account details would be released to Revenue and backdated to 2014. In an email yesterday, Airbnb told its hosts “we agree with legal and tax experts that the Revenue’s interpretation of the tax law is challengeable and that Rent-a-Room relief should apply to home sharing”.

“With a budget around the corner, we still have time to make the case. This won’t be easy and we’ll need your help. In the weeks ahead, we’ll be providing you with more information about how you can join efforts to press the Government for clear, fair tax rules.”

Airbnb said it had been in discussions with the Department of Finance and the agency’s position had been well received. However, the spokesman said there was some disagreement on interpretation between Airbnb and Revenue and a statement by the Minister would clarify matters.