Airbnb to collect and remit tourist tax on behalf of host and guest

KUALA LUMPUR (Nov 26): Airbnb and local authorities are discussing the implementation of Voluntary Collection Agreements (VCAs) which will enable the platform to collect and remit tourist tax on behalf of its hosts and guests in Malaysia.

“In Malaysia, the company has had meaningful conversations with authorities including the Ministry of Finance, the Royal Malaysian Customs Department and Ministry of Tourism and Culture to discuss the implementation of VCAs,” said Airbnb head of public policy of Southeast Asia Mich Goh in a media briefing here today.

She explained that the VCA is a tool designed by Airbnb to collect taxes from its hosts and guest community, and remit the taxes on their behalf.

“This helps to facilitate a streamlined process and lighten the administrative burden for local and state governments, as well as Airbnb hosts,” Goh noted.

However, there is no time frame for the implementation of the VCA yet.

“The discussion started since last year and it is an on-going discussion. We have no idea when will this get started but we are grateful that Malaysia is open-minded and welcomes discussion and dialogue from the industry,” she said.

Goh also said the platform was committed to providing data and sharing experiences from around the world to support the growth of the local tourism industry.

“We believe every city and jurisdiction is different, hence [each] should be treated differently, so we always work closely with the local authorities. We also share data to let them understand us better, and explore our impact to the local community and economy.

“We also believe we are playing an important role in helping the local authorities to shape policy around short-term rental by providing data and experiences of which practices suits [them] the best. We have partnering with more than 500 government in cities around the world for this so far,” Goh said.

Airbnb is also ready to contribute towards the shaping of Malaysia’s short-term rental regulation by signing two memoranda with Malaysia government.

“As part of the company’s continues commitment to empower Malaysia’s tourism industry, Airbnb has signed a Memorandum of Collaboration (MoC) with the Malaysian Productivity Council (MPC), and a Memorandum of Understanding (MoU) with the Malaysia Digital Economy Corporation (MDEC),” she shared.

As part of the MoC with MPC, Airbnb will share relevant data and best practices to inform recommendations on short-term accommodation policy in Malaysia.

Though this collaboration, Airbnb will assist MPC in shaping national policy plans related to the development of Malaysia’s tourism industry and infrastructure, as well as local communities.

Meanwhile, the MoU with MDEC makes it the first travel platform in Malaysia to enter into a partnership with the government agency.

The partnership is focused on promoting digital inclusion and empowering local hospitality entrepreneurs in Malaysia, while building capacity in both Airbnb's Homes and Experiences programmes throughout the country.

According to Goh, Airbnb had initiated the Experiences programme in Penang where it held an Airbnb Experiences training workshop for local guides who already provide personalised trips for foreign and domestic tourists.

The workshop module consists of best practices from the Airbnb Experiences team and tips to creatively leverage digital means such as Airbnb’s global platform for tourism promotion.

“We strongly welcome and support the Malaysian government’s focus on digital technology and look forward to continued knowledge exchange and collaboration with local stakeholders,” she concluded.