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Booking.com Dodged $180 million of Taxes, Italian Police Say

June 10, 2021, 4:27 PM

Italy has accused online hotel reservation giant Booking.com of avoiding more than 150 million euros ($183 million) in value-added tax, saying the platform—not the local rental properties—should have paid.

A Netherlands-based company—separately identified as Booking.com—regularly issues invoices that don’t include VAT to its partner structures in Italy, the financial police said Thursday. The company then applies a reverse-charge mechanism that transfers responsibility for declaring and paying VAT from the seller to the buyer, said the police—in this case, the local rentals.

Between 2013 and ...