Read this to learn how to navigate the withholding tax changes in Mexico that affect digital marketplaces like GetYourGuide.
Background
In Mexico, the tax system includes a "withholding tax" that impacts digital marketplaces such as GetYourGuide. This system mandates GetYourGuide to withhold specific taxes (8% IVA and 1% ISR) from the total value of bookings made by suppliers on the platform. This requirement applies exclusively to suppliers registered as individuals with a 13-character RFC (tax identification number).
Before November 1, 2024, GetYourGuide faced technical limitations preventing the automatic processing of these withholding taxes through supplier invoices. From January 2023 to October 31, 2024, GetYourGuide manually calculated and paid these taxes to the Mexican tax authority (SAT) monthly. To offset this cost, GetYourGuide temporarily increased the commission rate for certain suppliers by 9%, which was discontinued starting November 1, 2024.
From November 1, 2024, GetYourGuide's system (SAP) automatically calculates these withholding taxes for suppliers with a 13-character RFC. These taxes will be reflected on invoices for bookings made on or after this date. Suppliers will see these taxes on their November invoices, received in early December.
Process Description
Automatic Calculation and Invoicing:
- From November 1, 2024, GetYourGuide's SAP system automatically calculates withholding taxes for suppliers with a 13-character RFC.
- These taxes (8% IVA and 1% ISR) will be included in the invoices for bookings made from November 1, 2024, onwards.
- Suppliers will receive these invoices in early December, reflecting the taxes withheld.
Manual Calculation Period:
- Between January 2023 and October 31, 2024, GetYourGuide manually calculated and paid the withholding taxes to SAT.
- To cover the cost, GetYourGuide increased the commission rate for affected suppliers by 9%, which was removed starting November 1, 2024.
Frequently Asked Questions
Q: How can you reclaim the withholding tax (8% IVA and 1% ISR) applied by GetYourGuide?
A: You will receive a document called a CFDI a few days after receiving your GetYourGuide invoice. This document includes a QR code and a stamp from SAT, allowing you to reclaim the withheld taxes when filing their IVA and ISR tax returns. For detailed instructions, you should contact your tax office or accountant. The CFDI document will be sent to the primary email address listed on your supplier's GetYourGuide profile.
Q: Why is GetYourGuide applying these withholding taxes?
A: GetYourGuide is required to apply these withholding taxes as part of its VAT registration in Mexico to ensure compliance with Mexican tax laws. High rates of tax non-compliance in Mexico necessitate strict measures, including potential IP address blocking for non-compliant digital marketplaces. Therefore, it is crucial for GetYourGuide to adhere to these requirements. Proof of GetYourGuide’s VAT registration can be found in the provided document.
Q: Do these withholding taxes apply to all suppliers operating in Mexico?
A: No, the withholding taxes only apply to suppliers with a 13-character RFC. Suppliers with a 12-character RFC should update their GetYourGuide profile to remove the withholding taxes from future invoices. GetYourGuide regularly verifies RFC numbers, and if the number is invalid, the withholding taxes will continue to apply.