HELP! Mexico NEW Taxes - VAT, Income

in
KCMO, MO
Level 2
271 Views

Hello, there are any hosts who have their accounts in USA or Canada and also use them in Mexico?

 

Just trying to learn what best strategy. I recently saw an email that Airbnb going to apply new taxes on my earnings. About 20% and they recommend I will open a business in Mexico in order to get it back to 2-4%

 

I just saw the new earning modification on my income transaction

 

A total reservation "Payout" from $98.76 came to my bank account as $67.30

and a total "Payout" of $353.69 transferred to my account as $241.01 

 

Before that, I was getting the full total payout transfer to my account. It looks like now %31 of my earnings going to taxes, they take 2 types of taxes out of my total "Payout"

Tax Withholding for Mexico Income - %17.6

Tax Withholding for Mexico VAT - %14.1

 

Can anyone explain to me what is going on? So total they get %31.7 out of my total Payout. Those the guests not paying the VAT anymore with their reservation? Those the host responsible for both?

 

 

*********While I type this I saw another thing I don't understand. So I will share the details

 

The "Total Payout" is 

$353.69
 
When I go to the "Transaction History" I see new 
different transactions lines that never have shown in any other transaction:
 
Host Remitted Tax +$50.08
 
Reservation +$303.61
 
Tax Withholding for Mexico Income -$62.60
 
Tax Withholding for Mexico VAT -$50.08
 
The total transaction was $241.01 out of $353.69 Total Payout. I'm so confused about why "Host Remitted Tax" wash the "Tax Withholding", anyone can help? 
 

Any information, tips, or best strategy will be super welcome!

8 Replies

Re: HELP! Mexico NEW Taxes - VAT, Income

in
KCMO, MO
Level 2

Also, the total "Guest Paid" was  $424.75 after guest service fee and occupancy taxes and cleaning fee

 

Re: HELP! Mexico NEW Taxes - VAT, Income

in
Mena, AR
Level 2

I don't know where you are but feel your pain. There is a list of states where Airbnb collects all of the taxes from the renters at time of booking and provides the breakdown, so the renters won't think we are getting all that money. Guanajuato is NOT one of those states.

We submitted our RFC number, have attended a webinar, talked to our Mexico accountant, and spent hours on the Airbnb site without answers. They say we can set it up manually, but the links have changed and no longer work. 

Maybe if I set up a business account but that requires re-making my entire site and losing track of my current and future renters.

I was hoping someone here has figured it out

If I do, I'll come back and tell you.

I'm still working on it

 

 

Re: HELP! Mexico NEW Taxes - VAT, Income

in
Minneapolis, MN
Level 2

You will need to have an accountant in your home country that understands international affairs. 

We do have a business  in Mexico therefore have a TAX ID (RFC) that allows 6% tax for our state in Mexico 

(6%) . Our accountant state side deducts this from our US Tax (for our state 30%) so our US Taxes are lower.

Advantage to having Mexico RFC all your expenses i.e. staff wages, utilities, hosting materials for guests,

maintenance materials, etc are tax deductible in Mexico. USA bought materials i.e bedding, linens, our travel expenses, etc  can be tax deduced in USA . 

Hope this helps. 

Re: HELP! Mexico NEW Taxes - VAT, Income

in
Los Angeles, CA
Level 1

I'm having the same issue and I called Airbnb many times and nobody seems to know how to help and nobody has responded to my questions. They are taking almost 50% of my payout!

Airbnb seems not to care, I have over a month with this issue. I'm thinking about removing my house from Airbnb because I can't cover my expenses.

By the way VAT now is charged to both host and guest.

Re: HELP! Mexico NEW Taxes - VAT, Income

in
California, United States
Level 2

I'll add that I'm in the same boat.  Poor responses as it relates to this topic and they don't seem to know, either.  After 1.5mos at this, I wrote a letter to airbnb CEO & sent copy to CA attorney general office - not hoping for much but at least letting them know something is amiss. 

 

One twist to my circumstance - i have 2 different accounts both properties in Mexico (same state); one is getting charge all the taxes discussed and the other is not.  Go figure.  Big black eye for the platform that I thought was top notch. 

Re: HELP! Mexico NEW Taxes - VAT, Income

in
California, United States
Level 2

I too have property in Mexico and Airbnb is withholding 20%ISR and 16%VAT, which is fine for now until I get my RFC.  My main complaint (been dealing with them every day for 2 weeks now and still no answers) is I want proof the taxes they are withholding are being paid to the SAT in Mexico. They just keep deflecting. I don't think they are submitting these payments. This can't be legal. I'll be following this topic to see how many others are affected by this. This might require legal action.

Re: HELP! Mexico NEW Taxes - VAT, Income

in
Monroe, WA
Level 2

I'm having the same problem. I am not a resident and I have been told that I cannot get an RFC without being a resident. I have been told I can't pay my taxes without an RFC.

It appears that Airbnb is withholding Income tax but not remitting it because I am getting it back with my payout.

Everytime I call Airbnb they can't figure out what I'm talking about and send me the same airbnb links that do not provide the relevant info.

 

Re: HELP! Mexico NEW Taxes - VAT, Income

in
Portugal
Level 10

It’s a real nightmare!! The worse part if you are renting your property at 150 dollars a night, the guess will see it’s at 279!!!!

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