Mexico Taxes

[Steven1408]

     I am a new AirBnb home owner in Mexico....I spent HOURS with BnB support people setting up my account, calendar, etc...In the process, NO ONE mentioned VAT taxes!  They DID mention that Mexico lodging fees would be deducted.  SO...when my FIRST guest came last week...ALL went very well until my bank showed $400 LESS than what I was told my payout would be.

     THEN...I spent DAYS with reps back and forth.  Again, NO ONE knew about these taxes.  They told me to get an RFC....Im in the U.S....and wont be back to Mexico for awhile. They also had NO idea how to collect any of these taxes from a guest.

     I'm not as upset about paying these taxes....its just that NONE of the Airbnb people could TELL me about it.  I made VERY little on my first guest  and STILL am not clear about the whole situation. The tax situation should be made CLEAR TO NEW HOSTS!  They should NOT tell a host 'THIS WILL BE YOUR PAYOUT and then take another 20% out for Mexican tax.  Any thoughts or suggestions?

[Mike-And-Jane0]

@Steven1408 The Airbnb terms make it very clear that the host is responsible for setting their price and paying all taxes. The support team operate worldwide and cannot be expected to know the rules in every country//state/city

[Helen3]

Why are you expecting airbnb to sort out your tax situation. That's what you pay an accountant for? @Steven1408 

It's rather confusing that you expect a listing company to sort out your finances. 

[Karen3152 · Accepted solution]

Steven - check my posts on this subject.  You should be able to get a Mexican tax ID (RFC) without applying for residency.  However, you should hire a Mexican accountant to handle your taxes. Once you submit an RFC to AirBnb, they charge the 16% VAT to the guest if you choose the 3% option for AirBnb fees.  Then they will withhold only 4% income tax instead of 20% without an RFC.  Your costs are much less if you own property through fideicomiso (trust) and not through a Mexican Corporation. 

You need to find a facilitator or Mexican accountant who understands how to get you an RFC without having to apply for residency.  This link to Mexican tax authority (SAT) says it is possible: https://www.sat.gob.mx/tramites/97439/inscribete-en-el-rfc-como-persona-fisica-si-eres-extranjero

AirBnb link to this subject: https://www.airbnb.com/help/article/2834

However, this can be confusing.  A Mexican accountant is the only way to navigate it, although I have learned a great deal in the last two years as a US citizen who owns property in Mexico, traveling back and forth.

[Karen3152]

Correction.  Not the 3% option for their fees  on AirBnb.  You will receive more payout if you choose the split option for AirBnb fees.  Their fees will be split between you and the guest.

[Vp-Rentals0]

@Karen3152 What the the tax form do I have to fill out since my condo is under a name corporation and I am in United States but I have a Mexican residence?

[Karen3152]

My Mexican accountant files my taxes each month with SAT.  I have no idea what forms they use.