Published on : Wednesday, January 4, 2017
Not only for the frugal travellers, new research shows that choosing Airbnb over traditional hotels is a tax advantage as well. Around one third of the savings the company offers customers on accommodation in London comes from having a lower tax bill.
Traditional hotels have to pay expensive business rates on its property and it eventually increases the cost of entire stay. However, the small businesses have a much lighter taxation regime. the Airbnb service only charges VAT on its service fees. This is why an average hotel room costs $41.30 (£33.60) in a night tax as compared to an average Airbnb stay at just $8.40.
Airbnb said in a statement that the overwhelming amount of money generated by the Airbnb platform stays with hosts and their communities. The Airbnb model is unique and empowers regular people, boosts local communities and is subject to local tax. It also makes Airbnb fundamentally different to hotel groups and companies that take large sums of money out of the places they do business.
The Bed and Breakfast Association has attacked the company for not requiring hotel-standard fire protection (it does not require hosts to fit smoke alarms, for instance, nor oblige them to document emergency exits).
Airbnb will implement new rules from spring 2017 where its users can let out their property for 90 days in one year.