on January 6, 2015, 8:42 am, in reply to "Re: 19% vacation rental tax"187.148.169.228
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Most people who have stayed in a hotel in Mexico will be aware of the IVA (value added) tax of 16% added onto the bill. I understand that there is also a state tax of 3% added in Jalisco. In some cases the hotel will state that it is built into the cost of the room, particularly at all- inclusive resorts. This tax applies to most services, including restaurants. You'll see it added to your food bill. So why are some people in La Manzanilla paying this tax on their vacation rental and some aren't? Why is nobody paying the IVA tax in restaurants here? The answer is hard to find, as many facts of law in Mexico are. Mexico changed it's tax laws in January, 2014.The general effect of these changes was to require the use of electronic receipts (facturas) for all taxable tranactions. Most vacation rental owners in La Manzanilla don't know, or choose not to know, that they have to pay taxes to the Mexican tax authority (SAT) on their rental income. As such, they must be registered with SAT and have a tax number. The landlord submits the taxes, along with their income tax, to SAT electronically. If the renter is concerned about the legitimacy of these added taxes, they can ask the rental owner for a receipt that indicates their RFC tax number on it. If they don't have that number, they likely are not submitting the tax. Now here is the really confusing part. My accountant tells me that in areas like La Manzanilla, it is not yet a requirement that service industries collect the IVA tax. That is one of the reasons no restaurants in town add the IVA. The bottom line is that some vacation rentals charge this tax and most don't. I'm not suggesting that those that do are doing so illegally, but there does appear to be confusion around whether or not they actually need to be collecting it. It's kinda like the new law on licensing foreign-plated cars. There are many answers to the same question. None are right and none are wrong. |
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