Applicable only for Mexican suppliers
GetYourGuide has applied Mexican VAT of 16% to the commission it makes from suppliers of Mexican tours. This change is effective from your February 2023 invoice onwards, and GetYourGuide is required to do this under the Mexican Tax code laid out in the Value-Added Tax Act (Ley del Impuesto al Valor Agregado).
Q. Why is GetYourGuide applying 16% to the commission it charges me for use of its platform
A. As a provider of digital services in Mexico, we must strictly adhere to all aspects of Mexican tax law. One of those aspects is that we are required to apply 16% VAT to the commission we charge to suppliers for the use of our platform
This VAT paid can be deducted in your VAT return, and you should contact your accountant or tax office if you need advice on how to claim this. You should retain all of your invoices from us as proof that the VAT has been incurred.
Q. VAT is already included in the listed ticket price, why is GetYourGuide applying VAT again?
A. When a customer books a ticket for a tour on our platform, the transaction is deemed to take place between you and the customer for VAT purposes. When GetYourGuide charges commission to suppliers for using the platform, this is a completely separate transaction and VAT must be applied.
The SAT expect you to collect VAT on your bookings and pay this over to them in your VAT return. In much the same way, the SAT expects GetYourGuide to collect VAT on its economic activity and pay this over to them through our VAT return.
Q. Is the GetYourGuide invoice sufficient to claim the input VAT credit on my VAT return?
A. Yes, our professional advisors in Mexico City have reviewed the monthly invoice which GetYourGuide provides to its suppliers and have confirmed that it meets all SAT requirements. As a non-resident provider of digital services in Mexico, our invoices are not required to contain the items which are mandatory for a valid Mexican invoice (SAT stamps, QR codes).
Q. I am VAT registered as an individual, how do these changes affect me?
A. GetYourGuide must apply withholding taxes when hosting suppliers who are VAT registered as an individual. The withholding taxes which apply are as follows
- IVA - 8% of total bookings made on the platform
- ISR - 1% of total bookings made on the platform
This IVA and ISR will be available to you as credits in your IVA and ISR returns.
If you are VAT registered as an individual, we will be issuing CFDI’s in respect of these amounts starting from December 2024, which will allow you to make the necessary claims.
Q. I do not have an RFC, can I continue to list tours on the GetYourGuide platform?
You must provide an RFC in order to list tours on our platform. If you have any questions on any of the above, feel free to contact us at tax.team@GetYourGuide.com
Legislative references
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IVA for businesses (specifically in reference to the IVA which GetYourGuide applies to the supplier) |
Provision 18-D Section IV of the VATL (Value Added Tax Law) |
Calculate in each calendar month the Value Added Tax, applying the rate of 16% to the total collection (commissions collected from partners) during the month and make the payment no later than the 17th day of the following month. |
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IVA withholding for individuals |
Provision 18-J Section II Subsection a) of the VATL |
When collecting the fee and the value added tax related to the intermediation operations on behalf of the service provider, GetYourGuide shall: |
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Withhold from individuals that render services, 50% of the value added tax charged. |
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IVA withholding for individuals Provision 18-J Section II Subsection a) of the VATL When collecting the fee and the value added tax related to the intermediation operations on behalf of the service provider, GetYourGuide shall: Withhold from individuals that render services, 50% of the value added tax charged. In the case of those individuals who do not provide the RFC code, the withholding will be 100% of the value added tax charged. |
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ISR withholding for individuals |
Provision 113-A, Section III of the (MITL Income Tax Law) |
Individual taxpayers with business activities that sell goods or render services through digital platforms are obligated to pay income tax. The tax will be paid through withholding that will be made by the legal entities residents in Mexico or abroad with or without permanent establishment in Mexico, that provide the use of the digital platforms. |