Taxes on non-refundable tickets

Old Feb 2, 2019, 12:31 am
  #31  
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Okay the tax for the empty seat goes the Gov't. What if it isn't empty? Airline resells seat (standby or whatever) and now Gov't gets revenue for more seats than are on the plane. Same thing with the hotel example.

I paid port taxes on a cruise which included a port we did not end up going to. The US Company did not return the port tax and it WAS NOT paid to a gov't or port authority. They claim they communalize the fees, and the amount is the same even if they don't stop at any scheduled ports. Go figure.
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Old Feb 2, 2019, 2:56 am
  #32  
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I posted up thread that I brought UA to task over this, and they paid up pretty quickly. In my case, the amount in dispute was north of $200. I would not have wasted the time on a phone call or email over $50.
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Old Feb 2, 2019, 8:22 am
  #33  
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There are number threads in the various forums on this topic. Air Canada has a good breakdown on the taxes and refundability. TSA (AY) $5.60 tax is potentially refundable on a non-refundable fare. The US segment tax (ZP), 7.5% domestic flight excise tax (US), and PFC's (XF) are not. There was an IRS ruling some time back that they do not have to be refunded on non-refundable fares (the airlines remit these to the government shortly after ticket sale and don't get them back if you don't fly). For international tickets, some of the other taxes are potentially refundable.

https://www.aircanada.com/fr/en/ado/...reference.html

Last edited by xliioper; Feb 2, 2019 at 8:27 am
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Old Mar 29, 2019, 1:17 pm
  #34  
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I've searched the thread, but couldn't find information regarding a specific question I had...

In the past, I've had non-refundable airfares that I couldn't use, and despite the ticket being "fully non-refundable", the airline was still required (if asked) to refund the "taxes and fees" portion of the ticket (minus a nominal administration fee). My understanding is that legally, only the "fare" portion can be non-refundable, but taxes and fees must always be refundable.

Does this hold true with UA basic economy fares?
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Old Mar 29, 2019, 1:41 pm
  #35  
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Originally Posted by FlyingFilmGuy
Does this hold true with UA basic economy fares?
That's a UK thing. It doesn't hold true in the US at all.
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Old Mar 29, 2019, 1:47 pm
  #36  
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Originally Posted by Kacee
That's a UK thing. It doesn't hold true in the US at all.
Do you know if it holds true for UA tickets purchased for within the UK (purchased in pounds, from United's UK site, with UK origin on the ticket)? I have a basic economy flight with UA next week that, due to unforeseen circumstances, I suddenly might not be able to use.
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Old Mar 29, 2019, 1:59 pm
  #37  
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Originally Posted by FlyingFilmGuy
Do you know if it holds true for UA tickets purchased within the UK (purchased in pounds, from United's UK site, with UK origin on the ticket)?
That's a great question. I don't know the answer. There's certainly a very solid argument the UK rule applies.
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Old Oct 15, 2019, 2:15 pm
  #38  
 
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Refund of taxes/fees on intl non-refundable ticket

Hello. I couldn't find this answer through forum search. If I opt to cancel several non-refundable international itineraries, do I lose only the airfares or the associated international taxes and fees as well?
Thanks.
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Old Oct 15, 2019, 4:12 pm
  #39  
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Originally Posted by cagcag
Hello. I couldn't find this answer through forum search. If I opt to cancel several non-refundable international itineraries, do I lose only the airfares or the associated international taxes and fees as well?
Thanks.
UA CoC Rule 27. Refunds
E. Non-refundable Tickets:
  1. General Rule Except as provided in Rules 4 and 27 C), UA will not refund any portion of a Ticket that is purchased with a non-refundable fare, including the fare and any taxes, fees, or other charges included within the total price paid for the Ticket.
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Old Oct 16, 2019, 3:55 am
  #40  
 
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WineCountryUA.
Thanks for that.
I believe that I have misstated the situation. The itineraries in question are in K fare basis; I understand that they are cancellable with the proceeds going to a travel credit.
Is your answer still as you posted? And if taxes and fees are in the end refundable, what about "airline surcharges"? Are they considered as "airfare" and hence lost along with the actual airfare?
Thanks
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Old Oct 16, 2019, 4:50 am
  #41  
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Originally Posted by cagcag
...
I believe that I have misstated the situation. The itineraries in question are in K fare basis; I understand that they are cancellable with the proceeds going to a travel credit. ...
Correct, cancellable but not refundable.
Originally Posted by cagcag
...Is your answer still as you posted? And if taxes and fees are in the end refundable, what about "airline surcharges"? Are they considered as "airfare" and hence lost along with the actual airfare?
Thanks
The taxes, surcharges, ... are not refundable but will be accessable as part of the future travel credit.

Refundable means returned to the form of payment. On a non-refundable, ALL funds are retained by UA but you have the ability to use the total amount as credit toward a future flight.
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Old Oct 16, 2019, 10:08 am
  #42  
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The contract of carriage is not the governing authority, The law in the country of the transaction would be. There is simply nothing supporting the notion that the taxes are due because of intent to travel in US law. The taxable event has to be the consumption of travel - not the purchase of the ticket. In the case of the UK situation I think UA would have to refund. If UK law says carriers have to and the transaction occurred in the UK then UA has to refund as UK law is the governing authority.


Of course no one on the supplier side here cares to investigate. UA doesn't want the headache of releasing funds and the taxing authorities would certainly miss the funding. it is going to take a court case to force the return of the taxes in the US.
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Old Apr 16, 2020, 4:29 pm
  #43  
 
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Originally Posted by FlyingBeanCounter
The contract of carriage is not the governing authority, The law in the country of the transaction would be. There is simply nothing supporting the notion that the taxes are due because of intent to travel in US law. The taxable event has to be the consumption of travel - not the purchase of the ticket. In the case of the UK situation I think UA would have to refund. If UK law says carriers have to and the transaction occurred in the UK then UA has to refund as UK law is the governing authority.


Of course no one on the supplier side here cares to investigate. UA doesn't want the headache of releasing funds and the taxing authorities would certainly miss the funding. it is going to take a court case to force the return of the taxes in the US.
With the surcharges that are applicable for business class airfares out of the UK I think this becomes an issue worth considering....
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Old Apr 16, 2020, 4:56 pm
  #44  
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Originally Posted by Aussienarelle
With the surcharges that are applicable for business class airfares out of the UK I think this becomes an issue worth considering....
UA has generally done refunds for canceled award tickets subject to APD but generally kept APD in future flight credit for paid tickets, so theoretically it is possibly refundable
UK's Air Passenger Duty (APD) tax -- Questions, How to avoid, Refunds if incorrect,..
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Old Apr 16, 2020, 6:20 pm
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Originally Posted by WineCountryUA
UA has generally done refunds for canceled award tickets subject to APD but generally kept APD in future flight credit for paid tickets, so theoretically it is possibly refundable
UK's Air Passenger Duty (APD) tax -- Questions, How to avoid, Refunds if incorrect,..
Agree I have had those refunds when I used GPUs and the upgrade did not occur.

I have some paid nonrefundable P fares with the fee and that is annoying that the fee is not refunded when United has not paid it to the UK government.
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