Mexico's 2026 Tax Update Alters Revenue Management for Hotels via Online Travel Agencies Without New Taxes
📈 In 2026, Mexico revamped tax procedures impacting hotels and online travel agencies (OTAs). The change, involving no new taxes, affects how VAT and ISR are withheld and reported. A 2.5% ISR withholding applies to digital platform revenues, rising to 20% if RFC data is incomplete. VAT withholding can reach 100% with incomplete taxpayer info. This mandates precise reconciliation of revenues and taxes, relying heavily on technology for compliance and operational efficiency.
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