New fee structure for properties in Mexico

This question is for hosts with properties in Mexico.

Hosts in Mexico now pay:
3% + IVA for a service fee
4% for Mexican income tax withholding
8% for IVA
Guests now pay all of the occupancy tax ,which is a combination of a 4% Lodging tax (ISH) and an environmental tax of around $80 mxn per day.

According to AirBnb, in Mexico deductions/payouts will remain the same, which they claim is 16%.

Does anyone have any information regarding the above figures? Will hosts in Mexico have to add 12% onto the 16% we already pay or will we continue to pay the 16%?

Thank you in advance for your help.

For host that don’t speak english the spanish translation is below:

Esta pregunta es para anfitriones con propiedades en Mexico.

Los anfitriones en Mexico ahora pagan:
3% + IVA por una comisión de servicio
4% por retencion de impuesto sobre la renta
8% por IVA
Los huespedes ahora pagan la totalidad del impuesto de ocupacion, que es una combinacion de un impuesto de alojamiento (ISH) del 4% y un impuesto ambiental de aproximadamente $80 MXN por noche.

Segun Airbnb, en Mexico las deducciones/pagos se mantendran iguales, que segun ellos es del 16%.

Alguien tiene informacion sobre estas cifras? Los anfitriones en Mexico tendremos que agregar un 12% al 16% que ya pagamos o continuaremos pagando el 16%?

@muddy - Can you help?

I haven’t bothered wrapping my head around this yet, because my calendar is blocked til mid-Sept., as I am on my annual trip to Canada.

I’ll see if I can figure out what the OP is talking about in the next few days, though, because I can’t understand what she is referring to regarding “16%”.

I’m posting 2 images, one showing the host payout and the deductions, the other shows what the guest is now paying. You can see that the occupancy tax is charged to the guest which then a large part is given back to the host as "remitted occupancy tax.
The host deductions show:
Host service fee (3.0% + VAT/IVA)
MX income tax withheld (4%)
VAT withheld (8%)
This adds up to a 15% (plus a small amount of IVA on the service charge) which probably makes the total deuctions closer to 15.5%
According to the Airbnb info email, “For listings in Brazil and Mexico, the single fee will remain 16%”.
My question was does this mean that there will be no change to our deductions. And will the guest continue to pay the occupancy tax?

I know it’s confusing but I hope the images help clarify what’s going on.

Is Muddy the only other person on this forum who hosts in Mexico? I appreciate her input but it would be nice if a few others also would chime in.

One more question. The new simplified pricing takes effect on September 15th. Does that mean that all reservations made prior to that date, no matter how far into the future, will reflect the old pricing schedule? Or does it mean that any reservation made now, for dates after September 15th, will be using the new “Simplified Pricing”?

Text from the Airbnb email:

Take action to keep your payouts the same

Today, hosts and guests both pay service fees. As a result, you set one price, but guests see a higher price that includes their service fee. Many hosts tell us this makes pricing difficult.

To simplify pricing, we’re combining both fees into a single 15.5% service fee on September 15. The 15.5% fee is based on Airbnb’s global average service fees.

For listings in Brazil and Mexico, the single fee will remain 16%.

We built a tool that helps you adjust prices to account for the single service fee.* This video guides you through the change.

Adjust prices by the September 15 deadline to keep your payouts the same. If you don’t, your payouts will be lower.

Yes, they sure don’t make it clear whether the simplified fee will take effect on bookings made after Sept.15 or bookings made now for dates on and after Sept. 15.

I don’t think anything changes except that hosts collect the Airbnb service fee of 16% now, so you have to add it to your total nightly fee, @LaPastora. All will remain the same as far as the guest paying the occupancy tax and IVA. The guest pays all the IVA now,and always has, it’s just that Airbnb withholds 8% of it and submits it to SAT, and releases the other half to hosts, from which we can deduct the IVA we have paid out on any official facturas for expenses we collect. I seldom end up having to submit any of that 8%, because I get as many expense facturas as possible.

Bookings accepted up until the cut off date will be subject to current pricing regime, whatever date in the future they are booking for. After the cutoff date (15 Sept) they will subject to the new pricing structure. Unless you activate the adjustment tool before 15 Sept. The new regime starts as soon as you accept the adjusted prices. Bookings already made will be unaffected - it will only apply to new bookings. If you don’t use the tool and accept the changes, you carry on as normal until 15 Sept when the new fee structure kicks in regardless and you will then need to manually adjust your prices as you need to cover the change in fees.