France to vote on taxing sharing economy, classifieds
02 Dec 2016
A bill to be voted on by the National Assembly in France proposes that income earned by users on sites such as LeBonCoin be taxed.
Should the bill be voted into law, also platforms in the collaborative (sharing) economy, such as Airbnb and OuiCar, will be obliged to report the number of transactions concluded by users on their sites.
The bill was approved by the Finance Committee of France’s National Assembly, and will now proceed to the National Assembly for its vote.
The income earned by users on these platforms, for example by small artisans who sell their products and/or services on LeBonCoin.fr, is “very rarely declared, very rarely controlled and ultimately very rarely paid”, according to the preamble of the bill. This distorts competition, explained the bill. For example, it offers Airbnb an advantage over hotels, said the lawmakers.
The bill introduces a secure, automatic declaration of user revenue. That said, the drafters of the bill included an income threshold above which tax must be paid. For example, if an individual rents his apartment, the first €23,000 earned in a tax year won’t be taxed.
If you rent out movable goods, such as autos, boats and lawn mowers, the first €7,720 in a tax year will be tax exempt.