Facts About Tax Collection and Distribution

Automated Tax Collection and Distribution is the latest industry priority being addressed by ATPCO using our industry-leading collection and distribution infrastructure to provide timely and consistent tax rules to the marketplace. Developed in partnership with IATA, this product supports both itinerary and service fee tax data for pricing, shopping, revenue accounting, and audit of tax collections.

Value provided

• Automation of data, saving manual input for all organizations using the product
• A consistent and timely set of data and data application, allowing airlines and systems to move toward a “right the first time” environment for automated tax pricing
• Reduction of manual costs and lost cash flow from disputes about under-collection and non-collection of taxes
• Transparency of the total ticket price and the ability to manage revenues on the total cost to the passenger

Benefits

• Carrier exceptions collected in a timely and consistent manner
• Consistent “right the first time” data distributed to pricing systems
• Revenue accounting tax audit and tax billing based on consistent pricing data
• Revenue management of alliance journeys to optimize tax liability
• Presentation of total ticket and total service price in shopping applications

In 2008, two Working Groups hosted by ATPCO developed the data application and file layouts. A third Working Group was held in March 2009 to finalize data application design and engage attendees in an implementation planning exercise. As of September 2010, a full subscription product is available, as well as the ability for carriers to instruct tax exceptions directly to ATPCO.

Communicating through IATA and global trade organizations, ATPCO is actively engaged in increasing carrier participation, education, and input for the design of this industry solution. Experts from pricing, ticketing, revenue accounting, and taxation are involved at varying levels in discussions to date, ensuring there is good cross-disciplinary discussion. ATPCO would like to increase this participation in the coming months.

ATPCO requests that all airlines contact taxes@atpco.net with requests for information on the product, examples of “difficult” taxes, and examples of itineraries to improve our understanding of your individual tax pricing structure. Contact ATPCO today to start to leverage your benefits from this latest industry solution.