Taxes on non-refundable tickets
Apr 16, 2020 | 6:08 pm
#46
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Easier operational for UA to leave in in the FFC/ETC as APDs are smallish part of the overall ticket (under 10%)
Apr 16, 2020 | 6:11 pm
#47
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Those fees will be in the future flight credit and likely convertable to ETCs. My guess if you call after canceling the trip and request a refund, it is possible, have you asked?
Easier operational for UA to leave in in the FFC/ETC as APDs are smallish part of the overall ticket (under 10%)
Easier operational for UA to leave in in the FFC/ETC as APDs are smallish part of the overall ticket (under 10%)
Apr 16, 2020 | 6:26 pm
#48
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There is no uniformly correct answer. It depends on the taxing authority.
By way of example, the US excise tax of 7.5% (currently not being collected) is a tax on the sale, not the use of the ticket. Thus, if the ticket is not refunded, the tax is not refunded, but is still paid over by the carrier to the US Treasury. If the ticket is refunded, then the tax is refunded because the sale has been rescinded.
UK APD is subject to refund by the carrier, which is free to charge an administrative fee for processing the refund.
So, it all comes down to the specific ticket and tax.
By way of example, the US excise tax of 7.5% (currently not being collected) is a tax on the sale, not the use of the ticket. Thus, if the ticket is not refunded, the tax is not refunded, but is still paid over by the carrier to the US Treasury. If the ticket is refunded, then the tax is refunded because the sale has been rescinded.
UK APD is subject to refund by the carrier, which is free to charge an administrative fee for processing the refund.
So, it all comes down to the specific ticket and tax.