Airbnb will start collecting taxes from property owners in Amsterdam, following complaints from hoteliers in the city.
In an agreement signed between the home sharing pioneer and city officials, Airbnb hosts will pay a tourist tax which will then be passed on to the authorities.
Local hotels had previously complained how some hosts were not collecting the standard tourist tax from guests, in the same way that hotels, hostels and B&Bs did with their own customers.
Another element of the partnership, which officially began on 1 January 2015, will see Airbnb develop dedicated online guidance for hosts to remind them of regulations around tourist taxes, including their responsibilities to pay the levy.
Amsterdam government officials are hailing the move as a step towards applying taxation rules "equally and fairly to everyone".
Housing official Laurens Ivens says:
"We’re happy that we can make it easier for residents to rent out their homes according to the rules during their own holiday. This agreement will ensure that hosts receive clear information on how to share their homes responsibly and in accordance with local laws."
Taxes will be collected automatically from Airbnb hosts from February this year.
It is the first such official agreement involving Airbnb with any local authority in Europe.
Co-founder Nathan Blecharczyk says:
"We are glad Amsterdam has enacted progressive rules that allow people to share their homes with respectful guests who want to experience new communities and live like locals."
The company has been involved in various spats with localregulators in a number of US cities in recent years.