Re: 19% vacation rental tax
Posted by Larry F on January 8, 2015, 9:14 am, in reply to "Re: 19% vacation rental tax"
187.148.169.228
Maybe the final word on this. The IVA tax in most of Mexico has always been 16%, but did rise 5% from 11% in some areas such as border areas.
There are two taxes that the government expects from the owner of a holiday rental. There is income tax, which has nothing to do with the guest, and there is the IVA and state hospitality taxes. The ad for the rental should state clearly that there will be these taxes added to the cost of the rental. Otherwise, the guest should assume that it is included in the price.
Holiday rental owners in this area might want to check with their accountants to see if they are really supposed to be collecting the IVA tax at this time.
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