Hello @Rafal36, yes, this is common practice and required by law. As a host, I am required to collect personal information from guests (including ID details) and provide this information to the responsible authorities.
For example, in Portugal, as part of the country’s regulations, all accommodations, including hotels and vacation rentals, are required to report guest stays to the SEF (law enforcement agency responsible for border control and the enforcement of immigration laws). To comply with Portuguese regulations we have to ask our guests to provide us their personal information (full name, date and place of birth, nationality, address, ID number and the country that issued the document).
I can recommend you to ask your host to send you the law where you can see this information.
Kind regards.
Elena.