I'm all in with the problems reported by @Peter-and-Wendy2 and @Daniel433
After speaking or emailing with 4 different Airbnb Associates, two of whom were to be experts in Airbnb rentals in Mexico, I still do not have any answers. Here, however, is what I have gleaned regarding my situation, but am unable to get a confirm from Airbnb.
Here is the background: I have Mexican government issued residency but identify the US as my COR for tax purposes on the platforms. All of my Airbnb and Vrbo rental income from my property in Jalisco is deposited into my US bank account.
I ensure that guests are always charged the correct amount of taxes --which is 16% sales tax (IVA) and 3% hotel/transient occupancy tax for the state of Jalisco (ISH)--this is being done by both Airbnb and Vrbo. So far, so good.
Both platforms are also supposed to withhold a portion of my payments as income tax (ISR). Vrbo autmoatically does this, Airbnb does not. I cannot get any answer as to why they don't. But I know from my Mexican accountant's filing of my 2021 Mexican taxes that he had me pay the appropriate amount of income tax (I only had one month of rental income in 2021) so i should be in good stead with Mexican IRS (SAT) for 2021.
For 2021, my US accountant then factored in all of the US allowed deductions, and included all of the expenses (including Mexican taxes) as well as the income from the Mexican property. No worries friends, you will not be double taxed as @Sarah977 indicated. In fact, I had some nice write-offs on my US taxes (such as depreciation) that are not authorized under the Mexican tax system.
In addition to the monthly income tax (ISH) withholding, VRBO also makes the ISR and 8% of the IVA payments directly to SAT. Vrbo passes on the remaining 8% IVA to me to pay SAT. They allow this differential to accommodate hosts that may have cancellations after payments have already been made. Since the Mexican government collects the IVA in the month that guests pay, if a guest cancels the next month but before their stay, this gives the host wriggle room to reconcile over-payments or underpayments in their monthly payment to SAT. Vrbo then sends me the "factura" (invoice) that they also send to SAT monthly which identifies all the income, expenses, payouts to me as a host and to SAT. They do this in the digital format that SAT requires. My accountant must submit this copy of the factura when he submits my monthly accounting to SAT.
In my case, Airbnb does things a completely different way which we all know on this thread is very frustrating and incorrect. We know this because our Mexican accountants are telling us they are getting pushback from SAT. Here's how Airbnb processes taxes for my property. Airbnb collects the 16% and the 3% taxes from the guest and they pass all of that on to me to pay SAT directly. Then my Mexican accountant does the monthly reconciliation and I make all three tax payments to SAT including the income withholding (ISR) that Airbnb is not withholding. Airbnb also does not provide me with a monthly digitally compliant factura with the information that SAT requirers and THAT IS A BIG PROBLEM. I do not know how much longer SAT will take my tax payments without also submitting the factura from Airbnb they require but which Airbnb does not provide me.
I do not want to go into the considerable dissatisfaction I have with all of the polite and gentle "non-answers" I received from all of the Airbnb staff I spoke to but suffice to say, Airbnb needs to address this situation. Clear and fully tax compliant Airbnb policies and processes need to be developed, executed and satisfactorily explained to hosts in writing.
PLEASE Airbnb, get your act together on this. 🙏🏻
