Taxation Italian police suspect accommodation broker Booking.com of tax evasion

According to the company, accommodation services are themselves responsible for collecting and paying VAT.

Italian police suspect Dutch accommodation broker Booking.com of evading VAT for € 153 million. According to the news agency Reuters.

Booking.com acts as an intermediary between the accommodation services and their guests. Private accommodation services often do not have a VAT number, so the Italian tax authorities consider the intermediary service to be responsible for paying the taxes.

However, according to two Reuters sources, Genoa police have found out that Booking.com has unpaid VAT in Italy between 2013 and 2019.

Company has acknowledged receipt of the tax audit report and intends to discuss the matter with the Italian tax authorities.

According to the company, hotels and other accommodation services using the platform it provides are themselves responsible for collecting and paying VAT in Italy and other European Union countries.

The criminal investigation into the case is ongoing and the Italian tax authorities are launching a separate lawsuit, at the end of which Booking.com will have to decide whether to pay taxes or deny abuse.

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