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

Learn about Economy and Business Reward Fares available for Velocity members using Velocity Points. Find detailed fare rules and inclusions to help you make the most of your rewards.

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.