On August 21, 2019, a First Modification to Annex 3 of the Miscellaneous Tax Resolution for 2019 was published in the Official Gazette of the Federation (DOF, for its acronym in Spanish), which contains the NON-BINDING CRITERIA OF THE TAX PROVISIONS issued by the Tax Administration Service (SAT, for its acronym in Spanish).
In that publication, the following criteria were added to said Annex:
1. Criteria 41/ISR/NV.- Hosting services through technological platforms. They are subject to payment of Income Tax (ISR, for its cronym in Spanish).
The SAT has observed that there are technological platforms that allow to link owners of real estate or representatives of them (hosts) with the guests (clients) in order for the hosts to provide lodging services in the country to the clients.
In addition, the SAT has observed that it is an undue fiscal practice of the hosts not to accumulate for ISR purposes the income received by that business (commercial) activity.
2. Criterion 10/IVA/NV.- Real estate destined for hosting, through technological platforms.
The SAT has detected that there are taxpayers, individuals and corporations that through a technological platform contract hosting services without paying Value Added Tax (IVA, for its acronym in Spanish) for such activity.
Due to this, the SAT considers it an undue tax practice that providers of hosting services contracted through a technological platform omit payment of the corresponding IVA for such activity.
Similarly, under both criteria, the SAT also considers it an improper tax practice to advise, counsel, provide services or participate in the performance or implementation of such improper tax practices.
It is important to mention that although these regulatory criteria are not mandatory for taxpayers, The SAT will apply them when exercising its powers of verification and determination of tax credits.
We remain at your service for any comment or doubt.
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