We are renting out our guesthouse through AirBNB and I couldn’t make heads or tails of Vero’s guidelines regarding short-term rentals, so I was wondering if anyone has any experience on this:
1) I understand we have to pay capital income tax on the profits, but do I have to collect VAT from the renters and pay it to Vero as well? I wouldn’t think so, but [this guideline from AirBNB itself (screenshot)](https://imgur.com/a/N8uS6F3) seems to suggest some people do need to do just that ([PDF source of the screenshot](https://assets.airbnb.com/help/airbnb-pwc-taxguide-finland-en.pdf)). But the wording makes it sound like exceeding the yearly 10000 Euros isn’t a clear cut threshold above which you need to collect VAT, but that you need to consult a tax expert? What is your experience about this?
2) How does the actual process of declaring the capital income (not VAT) work on MyTax portal? As far as I can tell, there isn’t an option for short-term rentals on MyTax (or paper form 7K, [PDF here](https://www.vero.fi/contentassets/411ac7684ce144e283fa523c7846022e/7k_3012ev18_ws.pdf)), and [the slots for rental income only has one duration slot and one tenant slot (screenshot)](https://imgur.com/a/XGKCsjP), with stuff like personal identity codes (something that doesn’t apply to international short-term tenants), which is clearly designed for declaring traditional long-term rental agreements. How does it work when it comes to short-term rentals? Do I just keep filling document after document with all the tenants that have stayed in the property throughout the year? Or is there a cumulative way to do this?
by FlippityFloppityBing
2 comments
The 10000 is pretty clear cut. If revenue goes over that you need to register. But there can be situations where it is beneficial to register with lower amounts too though likely not in renting.
You need to declare both the revenue and any costs directly related to the renting operation and taxable profit is calculated based on those. There might be some special things to consider about how to figure out what part of heating costs for example should be reported if the same building is also just lived in part of the time.
You need to call the Finnish Tax Administration. They are _very_ helpful, because they’re probably the only government agency that actively makes money.
In any case, I can tell you this much. Renting is not a value-added activity, it is VAT exempt (meaning you will not be given a regular VAT number if you ask for one) and you cannot legally charge VAT or get VAT refunds. Instead, you might be given a “VAT number for property leasing” _if_ you have customers who are VAT registered _and_ engage in VAT-able activities, and even then you can only charge VAT when such a customer is renting the premises.
Now, Airbnb may not be considered regular leasing/renting but as accommodation services. I don’t know what decision the Finnish Tax Administration has made. Those are subject to VAT, at 10%, but whether or not Airbnb counts as “accommodation services” (which hotels and traditional holiday rentals are) under Finnish law, I do not know.
As you can see, it can get complex as hell, so call Vero. 🙂