The city of Vienna has announced the suspension of negotiations with Airbnb due to non-compliance with Austrian legislation.In Vienna, all renters of private accommodation for tourists, either directly or through online rental platforms, are required to pay a sojourn tax. For this purpose, renters must have a special account opened to which it is paid. The aim of the negotiations with Airbnb was to agree on the collection of fees directly from Airbnb and their forwarding to the City, writes Lider.mediaThe aim was to improve the control of the payment of sojourn taxes and to make it easier for renters to operate, so that in future data would be processed directly via the Internet from accommodation rental platforms. Airbnb rejected such a proposal, and the City decided to suspend negotiations due to non-compliance with Austrian legislation and the denial of the possibility of controlling earned sojourn taxes.”The city is not against the sharing economy. However, when a company does not respect Austrian law and is not ready to reach agreements on other issues, then we cannot successfully negotiate. ” said City Economy Councilor Peter Hanke.Villa Plama, Korcula / Photo: croatialuxuryrent.comIn addition to refusing to collect the sojourn tax, Airbnb also refused to provide the City with any information about its customers, such as whether a particular renter pays the sojourn tax. The termination of negotiations will not affect private renters who still have to comply with the legal obligation to open a special account for the payment of sojourn tax and send monthly statistical reports to the City.Following the termination of the negotiations, the City sent an official request to Airbnb to provide the requested user data within the legal deadline. In the event that Airbnb refuses to do so, the City will initiate administrative proceedings. Penalties for non-transmission data vary between 38 and 2100 euros per data.So far, the City of Vienna has reached agreements with 13 platforms for renting accommodation, and administrative proceedings have been initiated against five with which no agreement has been reached. In total, the City is in contact with 19 platforms, and is an example of good cooperation between city administrations and accommodation rental platforms. In addition, the City of Vienna is working to inform its own landlords who can find their rights and obligations on the City’s website.It is only a matter of time before other cities, ie states, wake up and seek cooperation according to the same model as in Vienna. It is simply a matter of regulating the payment of taxes in accordance with the law, which the landlords tried to avoid.This is by far the best example of how things should be regulated. Tax must be paid in each state, in accordance with the tax policy of each state. Thus, landlords must pay taxes in accordance with the Act, as well as all other entrepreneurs, who make money and sell their services or products. By direct cooperation with booking platforms, there is no blurring and everything is clear and transparent, so it is a win-win for everyone. The landlord who provides the accommodation service earns the booking platform its commission for connecting the buyer and the landlord and the state to which the tax was paid. In Croatia, this is regulated through the VAT ID number, and VAT is calculated only on the commission of booking pages.