Nepheline

We have a reservation at Mahekal resort in Playa del Carmen for a week in January. We have already paid (billed to credit card) the substantial deposit. Received email from resort manager informing us that the Mexican government has increased by 5% the VAT starting 1/1/14, so tax on our accommodations will now amount to 19%. Has anyone else received a similar notice from hotel for reservation after the new year?

jamie99

Have not read this elsewhere (TA, etc.), they just raised the tax a year or two ago on hotel rooms from 12% to 14%.

Jeff_Costa_Rica

It's true about the increase. Border states -- Quinatana Roo is one -- right now pay a lower VAT (11%) than the rest of the country (16%). The rate will be a uniform 16% for the entire country as of Jan. 1. It was just approved last week. That's the 5% increase.

Jeff_Costa_Rica

"Quintana Roo" that should be ...

PuraAventura

Jeff is right! And add to this 16% VAT an extra 3% for tax accommodation (impuesto al hospedaje) and you have your 19%.

Nepheline

I can understand why the tax rates among the states or provinces should be equitable. But 19% is the highest tax I've ever paid on a hotel room and the total tax for a week amounts to a day and a half of the room rate (and 80% of what I earn in a week!)
I can't help wondering if that tax rate would discourage future potential vacationers to the Yucatan. The tax rate on hotels in Charleston SC is almost that high, and we haven't ever returned there for that reason. If a person has somewhat limited means, taxes that high can make the difference between going to a particular destination and to someplace where the traveler's dollar could be spent on another day or meals, etc.

Katzgar

keeps the riff raff out

jette

Interesting. There has been discussion about this on other forums and yes, the tax is going to go up BUT if you have already reserved a rate and paid at least deposit you should not be required to retrospectively pay the difference.

Jeff_Costa_Rica

The hotel did not raise its rate. The government raised the tax. I don't see any way out of it.

jette

The tax is not in effect until 2014. You should not be paying nor be charged for tax on monies spent in 2013.

Nepheline

I emailed the Mahekal and said that I thought I should not have to pay the increased tax rate on the balance of my room rental. I received back a somewhat curt response from the manager stating that the higher rate applied to every night of our room rental and that I would owe an additional $110+- in tax on my room. I agree that I shouldn't have to pay an increased tax on what I've already paid; unfortunately, the hotel management doesn't agree.

Nepheline

Sorry, I should clarify that my request to the Marekal was to not pay the increased rate on the PAID DEPOSIT of more than $650.

jette

Wow, I am sorry to hear that. I know some property owners can be directly quoted as saying: "anything paid for in 2013 is not affected."

I guess if they are talking about balance due not paid until 2014 might be a different scenario but somehow I suspect there are some not so honest businesses out there already charging an extra "tax" when it's not actually implemented yet.

What ya gonna do? Paradise gets more expensive and congested every year!

Stewbear

Not Surprised. All governments seem "tax the tourist" crazy. San Francisco, Ca hotel tax is now I believe 27%.

Nepheline

Stewbear: I agree. Taxing the tourist is an easy out, since the individuals most affected don't vote, but I'm glad you mentioned SF tax. I'll be sure not to put that on our destination list.

Michael

<i>San Francisco, Ca hotel tax is now I believe 27%.</i>

15.5% from what I can find on the internet.

<i> I'll be sure not to put that on our destination list.</i>

Don't go to Europe where the VAT is 15% and up. On the other hand, the price posted includes the tax.