AMSTERDAM (Reuters) - Airbnb has agreed to collect Amsterdam's tourist tax from customers of its flat rental website after hotels, which already collect the tax on the city's behalf, complained of an unfair advantage.
The agreement, the first such in Europe, follows similar deals struck by Airbnb in the U.S., where it is based, and a spokeswoman for the city of Amsterdam said she expected the income collected from the tax to be in the order of millions of euros.
Until now, paying the tourist tax has been the responsibility of the people letting flats or rooms via Airbnb and similar sites, who were often not aware of the rules.
Earlier this year, the city approached Airbnb looking for a more reliable way of collecting the tax.
"The tax agreement ensures that the rules apply equally and fairly to everyone," said Udo Kock, the city alderman with responsibility for finance.
Airbnb co-founder Nathan Blecharczyk said he welcomed the agreement.
"We are glad Amsterdam has enacted progressive rules that
allow people to share their homes with respectful guests," he said.
Airbnb offers more than 1,000 rental options in the city, according to its website. From February 2015 it will start collecting a 5 percent tax on the price of each night spent in rented rooms in the city.
Founded five years ago, Airbnb's fast growth has put margins at traditional hotel businesses under increasing pressure, prompting some to revamp their entire digital strategies.
Airbnb has seen rapid rise in its worldwide rental listings, from 120,000 in 2012 to more than 800,000 in October.
(Reporting By Thomas Escritt; Editing by Elaine Hardcastle)