Airbnb Inc. agreed with Estonian authorities on an automated revenue reporting tool for hosts that simplifies their tax filings, building on the digital infrastructure in the tech-savvy nation.
The tool, to be available from Dec. 14, will allow Estonian hosts to report their earnings via Airbnb to the tax office, according to a joint statement on Wednesday. Last year, there were 2,600 active hosts on Airbnb in Estonia, with 130,000 visitors.
Airbnb is working with governments around the world to reach voluntary lodging-tax agreements. The home-sharing website is willing to back benefits such as increased hosting limits and tax-free earnings if hosts use platforms that share their basic details for tax purposes, as currently debated in Denmark, the company said.
Estonia, a 1.3-million nation that helped create Skype, files 96 percent of tax returns online, a process that typically takes 3 to 5 minutes, according to government data. Its tax policy has been judged as the most competitive among members of the Organization for Economic Cooperation and Development for the last five years by the U.S.-based Tax Foundation.
Tourism contributes about 7 percent of Estonia’s gross domestic product and accounts for “sizable” share of export revenues, according to the Economy Ministry.
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