The tax authorities are stepping up inspections of short-term rentals: officials are analysing income from Airbnb and Booking.com and imposing penalties of PLN 20,000-30,000 on property owners. Transactions from the last five years are being scrutinised more closely - even if you run a "private" or occasional rental.
The inspection covers, among other things, VAT (8%), PIT or CIT, commissions charged by foreign platforms and Social Insurance Institution (ZUS) contributions. Even worse - if the tax office decides that the rental activity is organised or regular, it may require you to register a business and make additional filings.
Why now?
- New EU rules and directives are forcing tax authorities to "tighten up" their systems, which means more aggressive inspections in areas that were previously semi-legal (the "grey area").
- Owning flats for short-term rental has become popular, especially in tourist locations - the tax authorities see potential taxable income in this.
- Thanks to new analytical tools and access to transaction data, the tax authorities can more easily identify people who have avoided declaring this income for years.
Who will this trend affect?
- Owners of flats who rent out rooms, apartments or short stays - even occasionally.
- People who use booking platforms - Airbnb, Booking.com and the like.
- Owners of properties in attractive tourist locations, by the sea or in large cities - where rental activity is intense.
- Non-compliant taxpayers - those who did not document their income, did not report their rentals or concealed income.
What you can do now to protect yourself
- Review your tax filings for the last five years - even if you have not made any corrections, it is worth going through the data, especially if you run a rental.
- Register your business where necessary - where the rental amount or frequency points to a business activity, consider formally registering a company, registering for VAT and documenting your costs and income.
- Document everything meticulously - rental agreements, payment confirmations, bank statements and booking platform commissions.
- Verify your costs and commissions - remember that you pay VAT on commissions charged by foreign platforms, and tax on "technical" services may also be required - the reverse charge.
- Consult a tax adviser - before the tax authorities come knocking, it is worth having a plan to defend your position or settle any arrears.
Our comment
This is a warning signal for everyone using short-term rentals: the game is now out in the open and the rules are clear - the tax authorities want to recover arrears and put an end to tax avoidance. There is no room left for "old habits" or for hoping that an inspection will pass your address by.
At Global Tax Partners we help clients get ahead of problems: we analyse risks, prepare corrections, support you in proceedings and advise on how to run a rental lawfully and without excessive risk.
👉 If you run a short-term rental or live in a tourist location - contact us today, before inspections become a real threat.
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