Learn how Guesty handles Airbnb tax withholdings for reservations in Mexico to ensure your financial records match your bank deposits.
Overview of Mexico tax withholdings
In Mexico, local regulations require Airbnb to withhold a portion of a host's payout and remit it directly to the Mexican tax authority. These withholdings include:
- Mexican Value Added Tax (VAT / IVA)
- Mexican Income Tax (ISR)
Guesty automatically deducts these withheld amounts from the reservation total once Airbnb processes the payout. This ensures the payout recorded in Guesty matches the net deposit received in your bank account, simplifying your bank reconciliation process.
How payout matching works
When Airbnb processes the payout for a reservation with Mexican tax withholdings, Guesty updates the financial details as follows:
- Withheld VAT: Deducted directly from the reservation's VAT line items
- Withheld income tax: Deducted directly from the accommodation fare
Until Airbnb processes the payout, the reservation in Guesty shows the full, pre-deduction total. The adjustment applies only after the payout processes.
Example breakdown
Here is how an Airbnb reservation with Mexican tax withholdings appears in Guesty after payout processing:
- Original reservation total: $956.01
- Airbnb withheld VAT (IVA): -$152.20
- Airbnb withheld income tax (ISR): -$23.78
- Final amount recorded in Guesty: $780.03
The final recorded amount of $780.03 reflects the exact funds deposited into your bank account.
Limitations and scope
Keep the following details in mind regarding tax withholding adjustments:
- Channel and region coverage: This feature applies exclusively to Airbnb reservations for listings located in Mexico. It does not affect reservations from other channels or in other regions.
- Timing: Financial updates occur strictly after Airbnb issues the payout. Pre-payout balances will continue to display full reservation totals.
Important:
Guesty does not provide tax advice. Always consult a professional tax advisor or accountant to confirm your specific tax obligations in Mexico.
Frequently asked questions
Why does my reservation still show the full amount before payout?
Guesty adjusts the reservation total only after receiving confirmation that Airbnb processed the payout. Pre-payout totals display the full amount until the funds transfer is complete.
What should I do if my bank deposit still does not match the Guesty balance after payout?
If the financial details in Guesty do not match your actual bank deposit after the payout has been processed, contact Guesty Support with the relevant reservation ID for assistance.