Guaranteed reward seat - taxes

[WLGFlyer]

Hi there,

Couldn’t find any recent discussions - I just used my guaranteed reward seat for a domestic VA flight. Taxes for a reward seat on this route are around $30.

To my surprise the call centre agent quoted me $90. I checked the e-ticket receipt and by the looks of it the ticket was issued as a revenue ticket and the $90 includes the GST component of the ticket value (~$650).

Still a good deal so no complaints but it seems odd? Has anyone experienced this?

Thanks!

 

[Mattg]

I haven't used this benefit myself yet, but I don't think it sounds right that you should be charged GST on anything other than the tax amount, which in this case would be $30?

 

[AIRwin]

Was there a booking fee?

Velocity Reward Seat | Virgin Australia

www.virginaustralia.com

 

[WLGFlyer]

No booking fee. The agent by his own admission was doing this for the first time and I just wanted to get it done after being on the phone for over an hour. I’ll follow up.

 

[hossein_au]

I am not an accountant but I don't think GST is payable on 'perceived' value of a transaction, only on the 'actual' transaction.

 

[Mattg]

I am not an accountant but I don't think GST is payable on 'perceived' value of a transaction, only on the 'actual' transaction.

Perhaps there was a transaction in the background between Velocity Frequent Flyer and Virgin Australia, which the OP wasn't a party to but ended up paying GST on.