Territorial taxation system vs Global taxation system

Paul9976
Level 1
San José, Costa Rica

Territorial taxation system vs Global taxation system

AirBnb does not understand about world wide  taxation systems. On a territorial taxation country where I live (Costa Rica) you pay VAT tax ONLY if goods are consume locally within its territory. If booking is out of Costa Rica borders (out of its territories) than you DO NOT pay taxes. 

For a Global taxation system as the USA, you pay taxes no matter where you consume services.

 

Airbnb is ilegally charging taxes incorrectly or does not understand how taxation is done worldwide with different taxation system.

 

It is obvious AirBnb is NOT a wordwide company as  many US companies that does not understand geography or taxes. Been a American San Francisco-based company this makes. sense.

 

Hard to believe it is on the stock market, who will invest a a company that does not know its own business...

6 Replies 6
Mike-And-Jane0
Level 10
England, United Kingdom

@Paul9976 According to your profile you live in California. Perhaps this is not helping Airbnb charge correctly?

AirBnb determine by phone and credit card that my residence is in Costa Rica. Which is fine as my residence is in Costa Rica. But it charged me VAT taxes incorrectly as Costa Rica has territorial taxation system. 

So I complaint to Airbnb with "No Logical" explanation about territorial taxation incorrect charges. (Lost Cause). I tried to escalate to proper taxation team unsuccessful. 

@Paul9976 Are you sure? Why not correct your profile? Strangely with a correct profile they get our taxes spot on.

I corrected profile.

Even correcting profile,  support team do not understand the difference of territorial taxation system.  And incorrectly applied Vat tax. Lodty cause.. Cancel booking and went/book with another company. 

Helen427
Level 10
Auckland, New Zealand

It's copy and paste what used to be paper Templates where human beings used to have personal conversations and used commonsense that sadly have been replaced with 'Machine Learning' where there's a lack of Human Involvement that is causing problems world wide.

 

Bring back Humans and these issues all go out the window.

 

BTW, ABB in there policy do state 'Jurisdictions' alas CS and some just Don't Get it!!