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France and Germany to tackle Airbnb's 'unacceptable' tax regime

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France and Germany to tackle Airbnb's 'unacceptable' tax regime
Photo: DPA.
18:00 CEST+02:00
France said on Wednesday it would team up with Germany to address an "unacceptable" tax situation for homesharing website Airbnb and other digital platforms like Google and Amazon.

"These digital platforms make tens of millions in sales and the French Treasury gets a few tens of thousands," Economy Minister Bruno Le Maire told parliament, adding this was "unacceptable."

Le Maire said France and Germany would come up with a joint plan to fix the situation by mid-September.

The Le Parisien newspaper reported Monday that Airbnb paid less than €100,000 in French taxes last year when more than 10 million French people used the site.

"Airbnb has the right to operate in France. But we have the right to demand from Airbnb and all the other digital platforms a fair contribution to the French treasury," Le Maire said.

Ongoing moves by the EU Commission and the OECD to address the tax question were "taking too much time, it's all too complicated," he said.

France and Germany were therefore going to submit a tax proposal at the next EU ministerial council on September 15th.

According to Le Maire's staff, the two countries will add to the meeting's agenda a draft text on the taxation of digital platforms.

"We want this to become a European Commission proposal which should be studied by European leaders at the European Council in December," he said. 

Many digital platforms operating in the EU are based in Ireland which offers a low corporate tax regime, allowing internet giants to escape a higher tax rate in other member countries.

Other web giants like Google, Amazon and Facebook would also be included in the initiative, Le Maire said. "Everybody has to pay a fair contribution," he said.

Le Maire's comments came a day after EU Economics Commissioner Pierre Moscovici said Airbnb should pay its fair share of taxes in France, as should footballer Neymar who recently transferred to French club PSG in a record deal.

Airbnb and other sites paid too little French tax, Moscovici told RTL radio.

"That is wrong, it's shocking," he said.

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