> Italian authorities are investigating whether Booking.com is liable for at least €150m in unpaid VAT on holiday rentals made through its platforms, according to two people familiar with the matter.
> Booking.com considers itself an intermediary between property owners and guests and treats reservations as direct transactions between the two.
> But according to those close to the investigation, the lack of an automatic system for VAT payment means that the tax often goes unpaid, resulting in a significant shortfall over time.
> Italian prosecutors are investigating whether Booking.com should be liable for paying the VAT owed on payments made between 2013 and 2018. They consider the €150m figure a “conservative estimate”, the people added, based on an analysis of the company’s revenues in Italy and police interviews with individuals using its platform.
> Booking.com considers itself an intermediary between property owners and guests and treats reservations as direct transactions between the two.
> But according to those close to the investigation, the lack of an automatic system for VAT payment means that the tax often goes unpaid, resulting in a significant shortfall over time.
> Italian prosecutors are investigating whether Booking.com should be liable for paying the VAT owed on payments made between 2013 and 2018. They consider the €150m figure a “conservative estimate”, the people added, based on an analysis of the company’s revenues in Italy and police interviews with individuals using its platform.