If you have not declared income from letting through Airbnb or another platform, you should have your tax position reviewed promptly. A platform report does not replace a tax return. A subsequent declaration does not automatically provide immunity from punishment.
What type of income does letting generate?
Private lettings of a flat or room generally generate rental income under § 21 EStG . The scale and nature of the activity may lead to a different classification. Using a platform does not determine the classification by itself.
The net amounts paid out are not the only relevant figures. Agreed rent, separately charged services, platform fees and other expenses must be allocated transparently. Where a property is used both privately and for paid lettings, the allocation of costs requires particular attention.
Is VAT due on Airbnb lettings?
VAT treatment must be distinguished from income tax. Short-term accommodation is excluded from the general VAT exemption for property lettings; see Section 4 no. 12 UStG. Whether the small business exemption under § 19 UStG applies must be assessed separately.
Since 2025, the domestic small business VAT exemption generally has turnover limits of EUR 25,000 in the preceding year and EUR 100,000 in the current year; official guidance applies a EUR 25,000 limit in the year a business starts. Other business turnover may be relevant. An exemption therefore cannot be inferred solely from the income of a single flat.
What data do the tax authorities receive from platforms?
The German Platform Tax Transparency Act requires platform operators to report certain seller and payment data. Property lettings may be included. The Federal Central Tax Office explains DAC7 reporting. Reporting a payment does not amount to a final determination of taxable income, but it may prompt enquiries.
What should you do if the tax authorities write to you?
- Assess the letter and deadlines: Which authority is enquiring, which years are involved, and have criminal or administrative offence proceedings already been notified?
- Preserve documents: Gather platform statements, bookings, bank statements, invoices and previous tax returns.
- Establish the facts: Record all income, expenses, usage periods and amounts already declared.
- Assess the next steps: Coordinate responses and any corrections with the tax and procedural situation.
Correction or voluntary disclosure?
A duty to correct may arise under § 153 AO . Whether an effective voluntary disclosure providing immunity from punishment under Section 371 AO is also possible depends on separate requirements. Completeness, possible blocking grounds and required payments must be assessed. Known investigations or discovery of an offence may be decisive.
Neither a subsequent declaration nor payment of arrears alone guarantees immunity from punishment. Where criminal proceedings are pending, the defence and tax obligations must also be coordinated.
Personal advice
I help assess the tax treatment of your lettings and review past returns. If proceedings have already been opened, I also consider tax criminal law issues. Please identify the years, authority and known deadlines in your enquiry.
Find out more: Tax law and Tax criminal law. Appointments are available in Berlin, Munich and online.
Legislation and sources
In particular section 21 EStG, sections 4 and 19 UStG, sections 153 and 371 AO and the German Platform Tax Transparency Act. The relevant provisions and official information are linked above.