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. 

Share

Anastasia Gnezditskaia

Anastasia Gnezditskaia has joined AIM Group in 2014 as a writer/analyst covering France, Belgium, the Netherlands and Eastern Europe. A Russian living in Antwerp, Belgium, she has a background working for trade publications covering markets and their regulation. She is educated at Moscow State Lomonosov University (MA in psychology) and Central European University (PhD in public policy). After obtaining her doctoral degree, she taught international political economy at George Washington University in Washington DC where she lived for 10 years. Following this she managed international development projects in Africa at the World Bank, and worked as a journalist covering Congress, federal government agencies and commodity markets, particularly shale gas development in North America.

Free Download

The complete analysis and insider news for global classifieds.

Download the Free 2016 Global Classified Annual Preview.

Download Now

You have Successfully Subscribed!