ssides
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Joined: Fri Feb 09, 2001 12:57 am

Why Must You To Pay Taxes On Int'l Award Travel?

Mon Feb 09, 2004 11:24 am

I've booked several AAdvantage awards over the years, and I've never been officially told why you don't pay any taxes or fees on domestic award travel, but you do pay taxes on international award travel. Do all airlines do this, or just American? It is my assumption that foreign governments don't allow the airline to pay the taxes, but I'm not 100% sure. Does anyone know?
"Lose" is not spelled with two o's!!!!
 
AirBuffalo
Posts: 83
Joined: Mon Jan 05, 2004 1:20 pm

RE: Why Must You To Pay Taxes On Int'l Award Travel?

Mon Feb 09, 2004 11:42 am


USAirways is the same way. Even now, when they advertise "no fees when booking online," they still charge for international.

A related question: Does the airline pay the fees for the no-charge domestic tickets? Or, are the "September 11th fee" and others only charged when the ticket is revenue?

Go Bills.
 
jeffrey1970
Posts: 1395
Joined: Sat Apr 07, 2001 1:41 am

RE: Why Must You To Pay Taxes On Int'l Award Travel?

Mon Feb 09, 2004 11:46 am

They can probably say that legally since they are not the ones who are charging you.

God bless through Jesus,

Jeff
God bless through Jesus, Jeff
 
ssides
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RE: Why Must You To Pay Taxes On Int'l Award Travel?

Mon Feb 09, 2004 11:53 am

I know WN charges the Sept. 11 security fee on Rapid Reward tickets, but no other fees.
"Lose" is not spelled with two o's!!!!
 
BH346
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Joined: Mon Jan 31, 2000 5:50 am

RE: Why Must You To Pay Taxes On Int'l Award Travel?

Mon Feb 09, 2004 12:02 pm

I was taxed for my WorldPerks award ticket to Osaka. Even with taxes, I paid only $85 compared to $1300 for a regular price ticket so I didn't really mind it.
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jeffrey1970
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Joined: Sat Apr 07, 2001 1:41 am

RE: Why Must You To Pay Taxes On Int'l Award Travel?

Mon Feb 09, 2004 12:09 pm

People need to remember it is not the airline that is charging you the tax. It is the government.

God bless through Jesus,

Jeff
God bless through Jesus, Jeff
 
ssides
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Joined: Fri Feb 09, 2001 12:57 am

RE: Why Must You To Pay Taxes On Int'l Award Travel?

Mon Feb 09, 2004 1:19 pm

No complaints here, just trying to figure out the difference between domestic and international. I'm fairly certain foreign laws prevent airlines from paying the passenger's share of the taxes, just like employers in the US are prohibited from paying an employee's share of payroll and income taxes.
"Lose" is not spelled with two o's!!!!
 
AirframeAS
Posts: 9811
Joined: Thu Feb 05, 2004 3:56 pm

RE: Why Must You To Pay Taxes On Int'l Award Travel?

Mon Feb 09, 2004 11:12 pm

The reason why you have to pay Int'l fees is because of the customs fees and some other charges that I dont know of. It costs alot of money to fly into another country, not to mention the landing fees as well. And probably a small fuel surcharge.
A Safe Flight Begins With Quality Maintenance On The Ground.
 
User avatar
EA CO AS
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RE: Why Must You To Pay Taxes On Int'l Award Travel?

Tue Feb 10, 2004 1:18 am

Let's say you were traveling from the U.S. to Mexico on vacation. Here's an example of some of the various taxes collected on your airline tickets (depending on the destination within Mexico):

TRAVEL BETWEEN US AND MEXICO

-BASED ON US CURRENCY ONLY

-AY- U.S. SECURITY TAX. APPLICABLE TO DEPARTURES FROM
USA TO MEXICO, BUT NOT FROM MEXICO TO THE USA.
-XY- U.S. IMMIGRATION USER FEE....USD 7.00
-YC- U.S. CUSTOMS USER FEE..MEXICO EXEMPT EFF 01OCT97
-XA- U.S. APHIS-ANIMAL/PLANT/HEALTH INSPECT FEE.USD 3.10
-US- U.S. INTL TRANSPORTATION TX..USD 27.40/$13.70 EA WAY
-XO- MEXICAN INTL SALES TAX...PCT/APPLICATION AND
-XD- MEXICAN INTL DEPTR TAX
  • USD 22.17 - CUN

  • USD 24.61 - GDL

  • USD 24.31 - SJD

  • USD 23.46 - PVR

  • USD 20.17 - MZT

  • USD 19.75 - ZIH

  • USD 18.29 - ZLO

  • -UK- TOURISM TAX..............USD 19.53

    Now, the carrier is required to collect these fees on your ticket and then pass them along to the governments involved. On a zero-value ticket (such as a mileage award), the fees are still charged by the U.S. and Mexican governments, and since the airline feels it would be inappropriate for them to pay for it (since your ticket is free, after all), the customer is responsible for them.
    "In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

    Comments made here are my own and are not intended to represent the official position of Alaska Air Group

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