Irish AIRbnb hosts may have tax issues arising from renting their property on Airbnb.

The Revenue updated its guidance on Rent a Room relief in May this year.

It stated that “income from the provision of accommodation to occasional visitors for short periods including, for example, where the accommodation is provided through online accommodation booking sites, does not qualify for relief as the visitors use the accommodation as guest accommodation rather than for residential purposes.

Income from guest accommodation is generally treated as trading income. This type of income, even where it is under the relevant limit, does not qualify for rent a room relief.”

What does this mean for a Airbnb host?

If you are a Airbnb host, this income must be submitted to the Revenue on a self assessment tax return. For the year ended 31st December 2016, the deadline to submit this is 31st October 2017.

If  income from letting the property exceeds €37,500 per annum, it will be necessary to register for Vat.

The relevant Vat rate for lettings is 9%. However it will be possible to claim the Vat back on all expenses wholly and necessarily related to the letting.