HST on flights, the panic the confusion and the anger

I am no tax expert, nor do I like paying taxes that I can not identify as being spent on something effective (which means I don’t like paying taxes in general).  There has been much confusion around the HST and it’s impact on the purchase of airline tickets prior to Apr 30th 2010. This past week I have been flooded with reservation requests both domestic and international and have given all my clients this info:

Effective for travel July 1, 2010, HST of 12-13% will be charged on domestic Canada airline tickets departing from Ontario or British Columbia, instead of the current 5% GST. HST will be charged on any travel within Canada for bookings made on/after May 1, 2010 for travel on/after July 1, 2010.

Not to panic if you are traveling internationally but Domestic you will be paying a few extra $$.  I see the HST impact on the Airline industry as just another fee, Some flights have up to 16 (SIXTEEN) different taxes, ranging from Airport facility charges, Fuel surcharges to sales taxes of various kinds……Funny how you can find a round trip ticket from Vancouver to Frankfurt for $569 in economy  with a tax of $405 !!!!.

Feel free to drop me a line if you have any questions. I do it for a living !

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