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Tax refunds on AC Rev ticket

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Old May 26, 2018, 1:22 pm
  #1  
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Tax refunds on AC Rev ticket

How much taxes/fees are refunded if you decide to forego the credit on a cancelled, unused ticket?
I know it's not all of them.
I paid $285 ($164 fare) for a return ticket YTZ-BOS.
Trying to determine if its worth paying $200+tax to re-use the credit or just take the tax refund.
Asked AC agent and they said they couldn't tell me how much it would be, they just send it off.
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Old May 30, 2018, 9:03 pm
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I would expect it would be $121 (i.e. 285-164), but I've only ever done this with an Aeroplan ticket.
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Old May 31, 2018, 6:03 am
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There might be a couple of non refundable US taxes for forfeiting the ticket, but the SQ+tax should get refunded at the very least.

They can all be reused/refunded on a ticket exchange though.
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Old May 31, 2018, 8:09 am
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All the U.S. taxes should be refundable because they are collected on your behalf on the assumption that you are flying. If you aren't flying, you should be getting them back.
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Old May 31, 2018, 8:44 am
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Is there GST on a US ticket? If so, wouldn't GST be non-refundable, at least on whatever amount of base fare that AC has kept for itself?
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Old May 31, 2018, 9:37 am
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GST/HST is only charged on the AIF for international tickets.
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Old May 31, 2018, 7:27 pm
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Originally Posted by YOWkid
All the U.S. taxes should be refundable because they are collected on your behalf on the assumption that you are flying. If you aren't flying, you should be getting them back.
I can't remember which, but there's a US tax that is non-refundable if you forfeit your ticket. There are several taxes collected and most are refundable, but not every single one.
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Old May 31, 2018, 9:13 pm
  #8  
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Right, the U.S. excise tax. Because if a portion of the fare is non-refundable, that part is taxable to the IRS. But if the fare is refundable, it should be returned back to the pax. Otherwise, it's claimable from the IRS.
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Old May 31, 2018, 9:31 pm
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Originally Posted by YOWkid
Right, the U.S. excise tax. Because if a portion of the fare is non-refundable, that part is taxable to the IRS. But if the fare is refundable, it should be returned back to the pax. Otherwise, it's claimable from the IRS.
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Old May 31, 2018, 11:07 pm
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Originally Posted by YOWkid
GST/HST is only charged on the AIF for international tickets.
I don't think the US qualifies as "international" for that purpose. My two data points today are (1) AC charges GST on Southwestern flight pass (only good for Canada-US flights) and (2) GST is charged on base fares for a few TB itineraries I looked up, e.g. YYC-SFO, YYZ-LGA.

Although in the opposite direction, e.g. SFO-YYC round trip, GST is charged only on the AIF. So perhaps if the POS is in the US, GST is not charged on TB, but for originating in Canada, it appears to be.
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Old May 31, 2018, 11:16 pm
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Originally Posted by YOWkid
GST/HST is only charged on the AIF for international tickets.
Canada-US fares are subject to GST if the fare orgin is Canada. AIF is taxed in the province if is incurred in.

Originally Posted by Adam Smith
So perhaps if the POS is in the US, GST is not charged on TB, but for originating in Canada, it appears to be.
It is based on fare origin, not point of sale.
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Old May 31, 2018, 11:38 pm
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Originally Posted by D582


Canada-US fares are subject to GST if the fare orgin is Canada. AIF is taxed in the province if is incurred in.



It is based on fare origin, not point of sale.
Fair enough. Since OP's itinerary was YTZ-BOS round trip, presumably it was subject to GST, and then the question reverts to whether OP will be able to get the GST back.
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Old Jun 1, 2018, 7:38 am
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Originally Posted by Adam Smith
Fair enough. Since OP's itinerary was YTZ-BOS round trip, presumably it was subject to GST, and then the question reverts to whether OP will be able to get the GST back.
I believe GST/HST are only refundable if the ticket is refundable.
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Old Jun 1, 2018, 8:43 am
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Originally Posted by D582


I believe GST/HST are only refundable if the ticket is refundable.
It depends which part of the taxes. For example, they get the GST and HST back on the SQ because the SQ is refundable. But the part paid on the fare isn't because the fare isn't refunded it's forfeited, so Uncle Justin doesn't care.
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Old Jun 1, 2018, 11:23 am
  #15  
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Originally Posted by D582


Canada-US fares are subject to GST if the fare orgin is Canada. AIF is taxed in the province if is incurred in.


Yes, that is correct; I had forgotten about that. The GST is on the base fare and security charge for wholly transborder tickets originating in Canada (meaning it is charged for inbound as well if purchasing a return ticket originating in Canada).[/QUOTE]
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