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Tickets with same tax code twice

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Created by Matthew H on 2010-12-22 10:33:59 Back to Topics

Tickets with same tax code twice

Hi IATA
 
Some tickets are correctly issued with the same tax code used twice - for genuine different taxes that share the same two letter code.  This is most common with the "FR" tax code.
 
In SIS, are carriers permitted to sub-total the two "FR" amounts and send them as one "FR" amount in the IS-IDEC? Or must we keep them separate at all times?
 
Many thanks,
Matt (BA)
Replied by Matthew H on 2011-01-05 08:11:48
Hello IATA
 
Do you have any update on this query?
 
Thanks,
Matt


From:
Posted: Wednesday, December 22, 2010 10:33 AM
Subject: Tickets with same tax code twice

Hi IATA
 
Some tickets are correctly issued with the same tax code used twice - for genuine different taxes that share the same two letter code.  This is most common with the "FR" tax code.
 
In SIS, are carriers permitted to sub-total the two "FR" amounts and send them as one "FR" amount in the IS-IDEC? Or must we keep them separate at all times?
 
Many thanks,
Matt (BA)
Replied by Ashley H on 2011-01-13 11:02:00
Hi Matt,
 
Apologies for the delay in getting back to you. Regarding your question, SIS can essentially handle more than one tax breakdown record with the same tax code. So in theory the 2 FR amounts can also be billed as a single amount under the tax code FR.
 
However, this is a rather procedural topic and we have requested the Revenue Accounting Working Group's interpretation of the Revenue Accounting Manual and the Rules in order to provide you with a complete answer. We will get back to you shortly regarding this matter.
 
Best Regards.

From:
Posted: Wednesday, December 22, 2010 10:33 AM
Subject: Tickets with same tax code twice

Hi IATA
 
Some tickets are correctly issued with the same tax code used twice - for genuine different taxes that share the same two letter code.  This is most common with the "FR" tax code.
 
In SIS, are carriers permitted to sub-total the two "FR" amounts and send them as one "FR" amount in the IS-IDEC? Or must we keep them separate at all times?
 
Many thanks,
Matt (BA)
Replied by Ashley H on 2011-01-27 13:30:00
Matt,
 
Apologies for the long delay in addressing your query. After our discussion with the RAWG and from intepretation of the RAM 2011, the final reply to this question is that billing airlines need to add together all taxes applicable for the billed coupon with the same tax code and bill them as a single amount.
 
If you refer to Chapter A2, 1.8.5, this states that the billing should be broken down per tax code (not per different taxes - within the same tax code).
 
There are two reasons for this:
(1) The airline receiving the inward bill can only account for the billed taxes by tax code, as no further information is (can be) provided on the interline bill that would enable a more detailed analysis and better account posting.
 
(2) If there were two different amounts billed under the same tax code, as the airline receiving the inward bill wouldn't know which one was meant for which tax, they would have to add the billed amounts together to compare the total tax billed under the same code with the total tax applicable to complete their inward bill audit.
 
I hope this adequately answers your question.
 
Best Regards

From:
Posted: Thursday, January 13, 2011 11:02 AM
Subject: Tickets with same tax code twice

Hi Matt,
 
Apologies for the delay in getting back to you. Regarding your question, SIS can essentially handle more than one tax breakdown record with the same tax code. So in theory the 2 FR amounts can also be billed as a single amount under the tax code FR.
 
However, this is a rather procedural topic and we have requested the Revenue Accounting Working Group's interpretation of the Revenue Accounting Manual and the Rules in order to provide you with a complete answer. We will get back to you shortly regarding this matter.
 
Best Regards.

From:
Posted: Wednesday, December 22, 2010 10:33 AM
Subject: Tickets with same tax code twice

Hi IATA
 
Some tickets are correctly issued with the same tax code used twice - for genuine different taxes that share the same two letter code.  This is most common with the "FR" tax code.
 
In SIS, are carriers permitted to sub-total the two "FR" amounts and send them as one "FR" amount in the IS-IDEC? Or must we keep them separate at all times?
 
Many thanks,
Matt (BA)
 
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