Uber and Airbnb have revealed in submissions to a federal inquiry that they route profit through companies in the Netherlands and Ireland, where taxes are lower.

Uber and Airbnb have told a Senate corporate tax avoidance inquiry that while they comply with Australian tax laws, their Australian operations merely provide support services to parent companies based in the Netherlands and Ireland respectively.

If European courts decide Uber is a transport company rather than an app, the company will be exposed to stricter licensing rules, additional operating costs and the risk of a reduced availability of drivers. Credit:Getty Images

Labor Senator Sam Dastyari, who is chairman of the inquiry – before which Uber and Airbnb could both be hauled – said as new sharing economy services emerged it was vital to get the tax settings right.

"It is alarming when a company is evidently sending untaxed revenue to the Netherlands or Ireland earned from services delivered in Australia," he said.