The tax office is on the hunt. They are in the crosshairs
Do you rent out your apartment to tourists via Booking or Airbnb platforms? For many, this is a solid cash injection. Especially if you have a place in an attractive location, where there is no shortage of visitors. Tax offices have decided to look into this phenomenon. The first penalties have already been issued.
In this situation, we are dealing with typical legal chaos. According to information from “Gazeta Wyborcza”, tax offices have started inspections. They are targeting people who rent apartments to others via Booking and Airbnb. The tax office orders people to set up businesses and pay outstanding taxes up to five years back. The actions of this institution clash with a recent letter from the Ministry of Finance. The ministry informed that in such situations it is not necessary to set up a business and you can settle your taxes under private rental.
Is it necessary or not?
According to Polish law, business activity is a profit-making activity carried out in an organized and continuous manner. This means that if you rent an apartment regularly (e.g. over many months) and derive benefits from it, it can be considered a business activity. However, if the rental is occasional, is not the main source of income and does not take place regularly, then in such a case there is no obligation to establish a business. So everything depends on the interpretation of the tax office.
How much is tax?
In the case of private rentals, it is most often 8.5% of income up to PLN 100,000. Above this amount, 12.5%. In the case of business activity, you must choose the form of taxation. Flat tax (19%) or general principles (12% or 32%, depending on income). It can be expected that there will be more such inspections in the near future, also due to the EU DAC7 directive recently introduced in Poland.
DAC7. What is it?
Online sales platforms (e.g. Allegro, Vinted, OLX, Booking, Airbnb) are now required to report to the tax office more frequently. This applies to sellers who have completed 30 or more transactions or when the total amount exceeds 2,000 euros.
