Apr 8, 2018, 10:40 pm
Last edit by: UA Fan
Routes that do not have fuel surcharges (YQ) when operated by carriers that normally charge YQ:
1. USA-Germany-Other country. If only the Germany-other country segment is on LH it does not have YQ. E.g. DFW-FRA-BLR with TATL on UA and FRA-BLR on LH.
2. USA-Canada-Other country. The USA-Canada segment on AC does not have YQ if the Canada-Other country segment is operated by a carrier that does not charge YQ. E.g. DFW-YYZ-ADD.
1. USA-Germany-Other country. If only the Germany-other country segment is on LH it does not have YQ. E.g. DFW-FRA-BLR with TATL on UA and FRA-BLR on LH.
2. USA-Canada-Other country. The USA-Canada segment on AC does not have YQ if the Canada-Other country segment is operated by a carrier that does not charge YQ. E.g. DFW-YYZ-ADD.
Please list your AP Taxes and SURCHARGES on AP reward tickets
Apr 19, 2016, 3:54 pm
#2418
Join Date: Apr 2012
Location: Ontario, Canada
Programs: AC E75K / Marriott Silver Elite / SPG
Posts: 143
Sweet itinerary, where are you stopping and exploring instead of layover? And how many days per city?
Apr 19, 2016, 4:08 pm
#2419
Join Date: Jun 2009
Location: YYZ, MNL, WAW
Programs: Marriott Titanium, Lifetime Plat, (now an AC nobody)
Posts: 1,978
Apr 19, 2016, 5:21 pm
#2420
Join Date: Feb 2010
Location: YVR
Posts: 1,465
U.S. International Transportation Tax $45.60
This should not be charged on award tickets since base fare is zero. However, Air Canada / Aeroplan argue that base fare is not zero, because they charge a carrier surcharge, which is not a tax, but a part of fare.
Apr 19, 2016, 6:56 pm
#2421
A FlyerTalk Posting Legend
Join Date: Sep 2012
Location: SFO
Programs: AC SE MM, BA Gold, SQ Silver, Bonvoy Tit LTG, Hyatt Glob, HH Diamond
Posts: 44,347
Apr 19, 2016, 9:17 pm
#2422
Join Date: Oct 2008
Location: YYC
Posts: 4,035
There is also a debate if this is a legitimate tax:
U.S. International Transportation Tax $45.60
This should not be charged on award tickets since base fare is zero. However, Air Canada / Aeroplan argue that base fare is not zero, because they charge a carrier surcharge, which is not a tax, but a part of fare.
U.S. International Transportation Tax $45.60
This should not be charged on award tickets since base fare is zero. However, Air Canada / Aeroplan argue that base fare is not zero, because they charge a carrier surcharge, which is not a tax, but a part of fare.
There are 3 main US travel taxes:
1) 7.5% tax on 'taxable travel'
2) US Segment Fees (Not relavent here)
3) International Travel Facilities Tax (What you are talking about)
International Travel Facilities Tax is added "on any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins or ends in the United States". Payment, as is typical in tax law, refers to any method whether miles, cash or barter, and therefore, it effectively applies to all international tickets. However, the International Travel Facilities Tax is not charged on a ticket if the 7.5% tax applies to the entire ticket.
The 7.5% tax applies to tickets purchased in the US. It also applies to miles that are purchased in the US (i.e. the bank pays it when they buy miles from the airline), and therefore reward tickets issued by US airlines are deemed to have been subject to the 7.5% tax as it was paid when the miles were bought/issued. In both cases, the International Travel Facilities Tax doesn't apply.
However, AP miles clearly aren't subject to the 7.5% tax at time of purchase/issuance as it's a purely Canadian transaction. Further, most (99%+) tickets they are used to book wouldn't be subject to the 7.5% tax either, as travel paid for outside of the US is only subject to it if the flights both start and end in the US.
Therefore, the International Travel Facilities Tax applies to the AP issued tickets.
A complete analysis would be pages long, but tl;dl: AP is right to charge you the tax and to remit it to the US
Apr 29, 2016, 7:18 pm
#2423
Join Date: Jun 2005
Location: YYC
Programs: Hilton Diamond, Hyatt Diamond, Accor Diamond, SPG Gold, Fairmont Premier, Club Carlson Gold
Posts: 326
Apr 30, 2016, 8:33 am
#2425
FlyerTalk Evangelist
Join Date: Jan 2002
Location: Canada
Programs: UA*1K MM SK EBG LATAM BL
Posts: 23,309
OR
Air Canada is collecting a bogus tax that they are not supposed to.
I am going to go with (b). Sorry.
May 5, 2016, 9:04 am
#2426
Join Date: Jun 2005
Location: New Orleans, LA
Programs: AA Platinum, SPG Gold, Marriott Gold, Hilton Diamond
Posts: 272
Who besides AC charges a surcharge on award travel between Canada & the US? I'm not happy to pay the US transportation tax, but that is why AC is collecting it on award tickets and not other issuing carriers. Also, note that it is not collected on AP tickets for travel on United.
May 6, 2016, 10:19 am
#2430
Join Date: Mar 2007
Posts: 4,784
