The following points are explained:

  1. These provisions include the rental of private houses and apartments, with the exception of buildings, thus characterized by the abolition of horizontal property, another type of building with structural and functional autonomy and premises located in apartments or private homes if they are connected to digital platforms up to one year. According to article 111, paragraph 3a, incomes received in the context of sharing economy from short-term lease of immovable property are exempt from VAT
  2. These provisions are included in Article 22 (Paragraph 1) of the VAT Code. The lessee owns the right granted by the lessor, has the facility for a certain period of time and for payment, and also prohibits any other individual from exercising this right.
  3. It is noted that the services provided when accommodating in hotels and rented furnished apartments do not fall under the category of VAT exemption and are subject to a preferential VAT rate of 13%. The same category includes any other temporary provision of accommodation facilities that are comparable and competitive with the proposed accommodation services in the hotel sector.
  4. Accordingly, the short-term lease of real estate in the context of sharing economy is excluded from the obligation to pay VAT, with the basic premise that during the lease the lessor is not provided with services corresponding to those provided by the hotel or similar to the hotel sector, such as cleaning, replacement of bed linen (and not its provision, since it is considered as a basic offer, not an additional one) and other services for servicing and proper care. customers. Equally important, the rent includes other utilities such as electricity, the costs incurred by the lessor and then the lessee, and, as a result, the right to exempt from VAT is not granted.
  5. In the same category of VAT exemption for equal treatment, short-term rent of immovable property also applies, which is not carried out through digital platforms, since the use or non-use of the Internet is not the rule for exempting from VAT.
  6. Exemption from VAT may be granted to individuals and legal entities of this type of lease, specifying that exempt persons who carry out the lease of immovable property without paying VAT are exempted from the obligation to register entrepreneurial activities with TIN / VAT, in contrast to legal entities (Section 8d of Article 36 of the VAT Code).
  7. In cases where the lessor provides additional services during short-term leases, both within and beyond sharing economy, similar to those provided in the hotel or in the relevant sector, the whole price is included in VAT, since services are provided for accommodation with a reduced VAT rates (13%), with the possibility of VAT discounts on expenses.
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