Island of Oléron reprimands Le Bon Coin for not remitting required taxes, following Airbnb's similar controversy.
French Court Orders Le Bon Coin to Pay Tourist Tax and Fines
In a recent development, the online booking and payment platform Le Bon Coin has been ordered to pay a substantial sum in tourist taxes and fines by a French court.
Le Bon Coin, which operates in the same market as Airbnb, refused to pay the tourist tax for 21 months, eventually settling the debt of 22,108 euros in December 2023. The company also faces additional legal costs of 10,000 euros due to its failure to remit the tourist tax and declare the relevant information.
Under French law, online platforms like Le Bon Coin and Airbnb are obligated to collect and remit tourist taxes on behalf of hosts directly to the local authorities. The tax is charged per night and per person for individuals aged 18 and over, with rates varying depending on the municipality, type of accommodation, and sometimes the property's classification or star rating.
This regulation is part of a broader effort to regulate short-term rentals and ensure local governments receive their due revenues from increased tourism-related stays. The law aims to improve transparency and help municipalities fund tourism infrastructure and services.
In this case, Le Bon Coin argued that it had the right to make mistakes. Initially, the CDCO sought over one million euros in civil fines. However, the tribunal rejected this argument, stating that Le Bon Coin did not claim any error but contested the actual taxation of the stays. As a result, Le Bon Coin has been ordered to pay 380,000 euros in civil fines for tax breaches on 384 bookings between 2020 and 2022.
It is essential for online platforms to comply with these regulations to maintain transparency and ensure the fair distribution of tourist taxes. For detailed current rates or specific municipal rules, interested parties can refer to the official commune or city council websites in France.
- In an industry where transparency and compliance are crucial, Le Bon Coin, a digital platform akin to Airbnb, was heavily fined 380,000 euros for breaching finance regulations related to tourist taxes.
- Businesses like Le Bon Coin must adhere to the law requiring collection and remittance of tourist taxes to enable local governments to fund tourism-related services and infrastructure, thereby promoting justice and fairness in the industry.
