Six steps to tax compliance.

1.
Get an RFC

• If you don’t have an RFC, get an RFC from the local SAT office in México so that you can be registered as a Mexican taxpayer

• When you register for the first time, you will inform SAT about the incomes you will earn online and nominate a “Tax Regime” that categorizes this income.

• Once you have your RFC, register it with each of the platform where you accept bookings for your home.

2.
Generate income facturas.

• For each booking you take, you must generate an official factura (invoice) that will declare the income with SAT, the Mexican tax authority.

• This factura is then available for use by guests to download and claim as an expense for them.

• You can generate each factura online directly on the SAT website, or sign up for a service that can generate facturas on your behalf.

3.
Collect expense facturas.

• Register your new RFC with each supplier, including utility providers such as CFE.  Failure to register will result in not being able to claim the expense. 

• Collect facturas from suppliers, property managers and anyone who you pay where the amount can be deducted. 

• Make sure each factura is official registered with SAT and is be considered deductible for you.

4.
File you tax returns.

• You must file a monthly and an annual return in Mexico.

• Show the income you have received, including the taxes withheld.

• Show the deductible expenses you have incurred. Remember you will be assessed a 30% tax on profits so showing your expenses is important.

• You probably will need to hire an accountant in México who can help you with this

5.
Pay taxes in México

• Pay any additional taxes owed on your income in excess of the amount withheld. 

• Taxes are payable monthly and can be paid directly from your bank account in Mexico.

• Services exist online to assist you manage your payments (or refunds)

6.
File taxes in your home country.

• The taxes you pay in México may be used to offset your taxes in other countries where a reciprocal tax agreement exists between that country and México.

• You should consult with your accountant in your home country or find an accountant that deals with cross border tax issues.