Czech Airbnb hosts face 40 per cent penalty on unpaid taxes

The General Directorate of Finance (GFŘ) says it has records of the untaxed revenue of Czech Airbnb hosts dating back to 2015 and will soon begin collecting them, the daily Hospodářské noviny reports.

Apart from back payments, the tax authority plans to impose penalties of up to 40 per cent. The GFŘ also considers Airbnb hosts to be subject to VAT payments for the fees Airbnb charges.

In Prague, Airbnb hosts may also owe fees to the municipality, which can charge a penalty of up to 500,000 crowns for failing to register for local taxes.