Price Increases [APD increases in Premium Cabins in Nov 2017 UK Budget]
Nov 22, 2017, 2:19 pm
#31
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Join Date: Jan 2002
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I don't necessarily agree that airlines are undertaxed, but I do think people who suggest APD is unfair or extortionate do conveniently ignore the fact that airfares are not subject to VAT. There aren't many products or services you can buy in the UK for several thousand pounds yet only pay £150 (or even £172) in sales tax.
If VAT was introduced, I could not see it being any different than AU where GST is applied only on domestic bookings where tickets are issued in Australia
Replacing APD with that would seem to be a great reduction
it seems to be suggesting that it is perfectly fair to introduce taxes of a high cost to make up for fact that other taxes would not be chargeable
Nov 22, 2017, 3:48 pm
#34
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My understanding of the duty is that it is the air carrier that is liable to pay the charges , not the passenger ; most airlines then charge it on to the passenger
Nov 22, 2017, 4:26 pm
#35
Join Date: Aug 2013
Posts: 8,770
For clarity, from a personal perspective I would of course love to see APD massively reduced or even abolished, and think there are reasonable arguments for doing so, but I can see the other side of the coin too.
Anyway I'm steering the thread off topic again - sorry Mods!
Nov 22, 2017, 5:58 pm
#37
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The UK does not charge VAT on wholly domestic (all) travel and probably derogates to some past agreement before it joined the EEC because (most?) other Member States do, including at an agreed lower rate. For example, clearly indicated on LOT tickets (8% -lower rate) and you can see it in the RD fare breakdown on Lufthansa if you churn on ITA.
Nov 22, 2017, 7:51 pm
#38
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Nov 23, 2017, 12:50 am
#39
Join Date: Nov 2010
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I don't necessarily agree that airlines are undertaxed, but I do think people who suggest APD is unfair or extortionate do conveniently ignore the fact that airfares are not subject to VAT. There aren't many products or services you can buy in the UK for several thousand pounds yet only pay £150 (or even £172) in sales tax.
Nov 23, 2017, 1:03 am
#40
Join Date: Aug 2013
Posts: 8,770
For VAT, but they are subject to SDLT, which is just another form of sales tax.
Of course as of yesterday first-time buyers will get some relief from SDLT but we hardly need venture into the pros and cons of that move!
IIRC some party/organisation mooted the idea a while ago of making APD based on how many times you had flown that year. Utterly impractical though.
Of course as of yesterday first-time buyers will get some relief from SDLT but we hardly need venture into the pros and cons of that move!
IIRC some party/organisation mooted the idea a while ago of making APD based on how many times you had flown that year. Utterly impractical though.
Nov 23, 2017, 4:28 am
#41
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For flights that depart next year that have been booked, paid and ticketed at the current rate what rules and procedures apply?
Will BA attempt to claim the difference, if so how will this be done given that they don't store the CVV number of the card used?
Can the customer cancel without penalty due to the increased cost?
Will BA attempt to claim the difference, if so how will this be done given that they don't store the CVV number of the card used?
Can the customer cancel without penalty due to the increased cost?
Nov 23, 2017, 4:51 am
#42
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For flights that depart next year that have been booked, paid and ticketed at the current rate what rules and procedures apply?
Will BA attempt to claim the difference, if so how will this be done given that they don't store the CVV number of the card used?
Can the customer cancel without penalty due to the increased cost?
Will BA attempt to claim the difference, if so how will this be done given that they don't store the CVV number of the card used?
Can the customer cancel without penalty due to the increased cost?
https://www.ft.com/content/349ddabe-...b-291a884dd8c6
Nov 23, 2017, 6:43 am
#43
Join Date: Apr 2015
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My mistake on the date. Somehow I had got it into my mind it was from next April.
I was thinking about the mess that the retrospective Norway tax caused and wondered if something similar might happen here. Good to know there's no conflict in this case.
I was thinking about the mess that the retrospective Norway tax caused and wondered if something similar might happen here. Good to know there's no conflict in this case.
Nov 24, 2017, 10:32 am
#44
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It was the embarrassment of the resulting publicity that made the government change tactic and publish its plans further in advance than any current selling window. Thus the April 2018 change was announced long ago, and the latest is for 2019, when no one yet has a ticket.
Nov 24, 2017, 10:37 am
#45
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For flights that depart next year that have been booked, paid and ticketed at the current rate what rules and procedures apply?
Will BA attempt to claim the difference, if so how will this be done given that they don't store the CVV number of the card used?
Can the customer cancel without penalty due to the increased cost?
Will BA attempt to claim the difference, if so how will this be done given that they don't store the CVV number of the card used?
Can the customer cancel without penalty due to the increased cost?