State to tighten sharing economy revenue reporting regulations

The Ministry of Finance wants to tighten up revenue reporting regulations for people who are active in the sharing economy, such as users of Booking.com and AirBnb.

Currently, people must declare their income and be taxed on it but the Tax and Customs Board cannot verify that people are fully complying.

Chief Specialist of the Tax Policy Department of the Ministry of Finance Artur Lundalin said: “The tax authority does not know, and cannot reasonably know in its entirety, who are the service providers who operate on these digital platforms, how many there are, on which digital platforms they operate at all and how much they earn from their activities there.”

The Ministry of Finance wants to change the law to fix this gap. It will create reporting obligations for both Estonian and foreign digital platform operators.

“These digital platform operators then collect a certain amount of data – about the identity of the service provider and his business activities – and then pass it on periodically, i.e. once a year, to the tax authorities,” Lundalin said.

According to the plan, the deadline for submitting data to the Tax and Customs Board could be February 1, and the data to be submitted would relate to the previous calendar year.

Read more: ERR.EE

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *