New law will change the way you rent out your vacation home.

Mexico’s tax authorities on May 12 published in the official federal gazette a series of new rules that provide additional guidance on the taxation in Mexico of digital services and transactions performed on technological platforms.

The new rules form part of the omnibus tax bill (in Mexico, Resolución Miscelánea Fiscal) for this financial year and enter into effect on June 1.

The new law requires that all the digital platforms operating in Mexico, such as Rappi, Uber, Mercado Libre, Airbnb, etc, withhold a percentage of their users’ sales as a tax payment.

Digital platforms are requesting all their users provide them their RFC, that is their Mexican taxpayer registry number. For now, only individuals are liable for this retention. Corporations will keep reporting their taxes as before.

This law will have a big impact on people who rent their homes on Airbnb and other platforms. Stay tuned.