Why are airline tickets not taxed ?
Sep 17, 2016, 9:37 am
#1
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Why are airline tickets not taxed ?
Every service / product, so also transportation (bus / train / car fuel) is taxed, called GST, Sales Tax or whatever.
Why are air tickets exempt from sales tax ?
According to COP21 climate change plans, we should do everything to lower CO2 emissions and air travel is one of the larger ones. Now, oil prices are low, air tickets are cheaper than ever, this is a chance to tax air tickets, according to the principle 'the polluter pays'.
Why are air tickets exempt from sales tax ?
According to COP21 climate change plans, we should do everything to lower CO2 emissions and air travel is one of the larger ones. Now, oil prices are low, air tickets are cheaper than ever, this is a chance to tax air tickets, according to the principle 'the polluter pays'.
Sep 17, 2016, 9:48 am
#2
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What country? Airplane tickets are taxed at the federal level in the USA, but at least generally not hit with state sales tax. The old PSA and even early Southwest might have been exempt from the federal and subject to state taxes when they operated solely within a single state.
Sep 17, 2016, 10:27 am
#3
Join Date: May 2005
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Every service / product, so also transportation (bus / train / car fuel) is taxed, called GST, Sales Tax or whatever.
Why are air tickets exempt from sales tax ?
According to COP21 climate change plans, we should do everything to lower CO2 emissions and air travel is one of the larger ones. Now, oil prices are low, air tickets are cheaper than ever, this is a chance to tax air tickets, according to the principle 'the polluter pays'.
Why are air tickets exempt from sales tax ?
According to COP21 climate change plans, we should do everything to lower CO2 emissions and air travel is one of the larger ones. Now, oil prices are low, air tickets are cheaper than ever, this is a chance to tax air tickets, according to the principle 'the polluter pays'.
I believe the reason you don't see the tax added on at the time of purchase is because of laws in the U.S. requiring full disclosure of cost in ads.
Sep 18, 2016, 1:51 am
#4
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From the UK, there is no VAT on them which seems strange. I'm guessing that the greatest value would be for flights going outside the EU and thus would be exempt which perhaps is why VAT is not added, or perhaps it's by international treaty. But the lack of VAT is made up for by APD.
Sep 18, 2016, 2:38 am
#5
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UK/EU has very little that actually falls into the actual tax category. It's mostly airline or other charges, but the airlines bunch it together as taxes and charges and have a smile when everyone deems it all taxes and blames the government.
Sep 18, 2016, 2:44 am
#6
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From the UK, there is no VAT on them which seems strange. I'm guessing that the greatest value would be for flights going outside the EU and thus would be exempt which perhaps is why VAT is not added, or perhaps it's by international treaty. But the lack of VAT is made up for by APD.
Sep 18, 2016, 7:13 pm
#7
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In the U.S., services are not generally subject to sales taxes. Airlines make up for this by being subject to a bazillion other taxes.
Sep 18, 2016, 7:15 pm
#8
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Indeed. Many sales taxes are not true value-added taxes and thus are not applied to services. Typically countries/states with a form of VAT will also apply it to airline tickets.
Sep 18, 2016, 7:23 pm
#9
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Every service / product, so also transportation (bus / train / car fuel) is taxed, called GST, Sales Tax or whatever.
Why are air tickets exempt from sales tax ?
According to COP21 climate change plans, we should do everything to lower CO2 emissions and air travel is one of the larger ones. Now, oil prices are low, air tickets are cheaper than ever, this is a chance to tax air tickets, according to the principle 'the polluter pays'.
Why are air tickets exempt from sales tax ?
According to COP21 climate change plans, we should do everything to lower CO2 emissions and air travel is one of the larger ones. Now, oil prices are low, air tickets are cheaper than ever, this is a chance to tax air tickets, according to the principle 'the polluter pays'.
Sep 18, 2016, 8:17 pm
#11
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Canada charges GST on domestic and US flights (although international are generally exempt), along with various other taxes. As an earlier post noted, laws require airlines to show tax-inclusive pricing. As a result, you don't see sales tax added after the fact like you do with most purchases, but don't worry, the government hasn't missed this opportunity for you to contribute to society 
Sep 18, 2016, 10:28 pm
#13
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Generally sales taxes are levied in the country where the ticket is sold. The example posted is for a ticket sold via a US company to a US resident with a US address for a trip originating in the US. When I've priced tickets on EU sites for intra-EU trips they show taxes based on the country of the airport where the first segment departs.
Sep 18, 2016, 11:37 pm
#14
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Generally sales taxes are levied in the country where the ticket is sold. The example posted is for a ticket sold via a US company to a US resident with a US address for a trip originating in the US. When I've priced tickets on EU sites for intra-EU trips they show taxes based on the country of the airport where the first segment departs.
Sep 20, 2016, 9:32 am
#15
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