Renting accommodation through Airbnb or Booking

As the real estate market is blossoming in Slovenia, investments in property are very common. Many of those investments are made in order to start a business in Slovenia. In the past, long-term rent was very popular. But currently short-term rent, mostly for tourist use, has been more lucrative for entrepreneurs. This is mostly due to the increasing popularity of online portals like Airbnb and Booking.com. In 2020, you can expect stricter supervision of the Slovenian tax office for accommodation which entrepreneurs rent through those online portals.

Data d.o.o. can offer full support if you are starting your business in Europe by company registration in Slovenia. Our seasoned experts include accountants and legal experts. They can guide you through the conditions you have to abide by in order not to encounter problems when renting your property through Airbnb or Booking.

Renting accommodation through Airbnb or Booking – do you have to register in the VAT system?

Renting real estate for tourist purposes through portals like Airbnb requires abiding by the reverse tax charge. This is determined in the VAT Directive, where the provisions are summarized in the Value Added Tax Act.

If you are renting accommodation through advertisements on websites of non-Slovenian providers (like Airbnb), you have to register your company in VAT system. According to this registration, you would need to issue invoices according to this directive and pay 22% VAT in Slovenia for renting accommodation through Airbnb.

After VAT registration you cannot request VAT refund. Also you would have to submit VAT calculations monthly in electronic form (through the portal eDavki). When making other purchases within Slovenia, you do not calculate VAT. You have to do this even if you did not have a VAT ID number because your turnover was under the limit to enter the VAT system normally. This limit has a threshold of 50.000€ in the last 12 months.

You can avoid penalties by self-declaration and enter the VAT system

If you have not yet registered your company for VAT purposes, you can apply for the VAT number and submit the calculations of VAT for the previous months. In this way, you would avoid penalties, which you could receive from the tax office.

In order to rent accommodation through Airbnb legally, you also have to register the appropriate business activity. You can find it under the SKD code 55.203 – Renting private rooms to guests.

For more information on company registration in Slovenia, EU, send us an e-mail to data@data.si. You can also contact us over the phone 00386 1 6006 270 or 00386 40 530 718 (Viber, WhatsApp). You can also follow us on Facebook.