Help Understanding Flight Booking

[dennisr]

dennisr was referring to a flight originating in Arg. I guess if it is a roundtrip, originating in Arg you will have a leg that sdtarts outside Arg but that clearly shows that you return to Arg. I think what any expat with foreign only cc should do is to simply buy miles online of the desired airline and proceed to buy the tickets with those.

Indeed EZE-ATL-SEA and return to EZE

For whatever it is worth. May need a subscription, posted entire notice: http://www.internationallawoffice.com/Account/Login.aspx?ReturnUrl=http%3a%2f%2fwww.internationallawoffice.com%2fnewsletters%2fdetail.aspx%3fg%3d6a926b43-2ae3-41d7-a366-e1f437115213
February 26 2014


On December 2 2013 the Central Bank issued Communication A5499, which entered into force the following day. The communication states that in order to sell international airline tickets, tickets where at least one leg takes place outside Argentina or tickets for tourist services in Argentina or abroad to a non-Argentinian resident, all sales must occur:

through a debit or credit card issued abroad;
through a wire transfer in a foreign currency from an account abroad;
via cheques drawn from a bank account outside Argentina; or
in foreign currency (cash).
Otherwise, any amount resulting from such sales will not be permitted for referral abroad.

This raises significant concerns for international carriers operating in Argentina (even those operating as offline carriers) which – added to the recent rise in taxes applicable to airline tickets sales – will make operating flights to or from Argentina increasingly difficult. The main issue relates to the fact that the communication refers to 'non-residents' instead of 'foreigners', thereby making it impossible for carriers to comply unless sales take place in person and the sales agent can verify the passenger's place of residence from his or her passport or identity document.

Approximately 95% of passenger tickets are sold by travel agencies, facilitated through the Billing and Settlement Plan run by the International Air Transport Association (IATA). Consequently, airlines cannot themselves control whether the buyer is a non-resident. This puts airlines in a difficult position, since they cannot comply with something that is beyond their direct control. The problem becomes even greater if online sales are considered. During an online sale, the website can check only the nationality of the payer; whether the person attempting to buy an airline ticket is resident abroad is unknown. Furthermore, in order to remit moneys abroad for the sale of tickets, the company's legal representative must sign a sworn statement to the bank confirming that all of the moneys that the company seeks to remit correspond to sales to residents (something that he or she cannot truly confirm).

La Cámara de Compañías Aéreas en Argentina (the chamber that represents airlines operating in Argentina) has held various meetings with the Central Bank and IATA representatives. A revised version of Communication A5499 has been promised by the Argentinian authorities, but as yet there has been no further news regarding such modifications. Until this change occurs, all that the aviation industry can do is wait for this latest storm to pass.

 

[allcraz]

So, I'm still not sure about one thing. If I want to book a flight on a U.S. site with an Argentine CC (because I now can't find the flight on any Argentine sites but can find it on US sites), will I be charged the 35% like I usually am on my credit card for purchases on US sites on top of the 35% tax that is already included in the price of the ticket? Does anyone know for sure?

 

[nikad]

So, I'm still not sure about one thing. If I want to book a flight on a U.S. site with an Argentine CC (because I now can't find the flight on any Argentine sites but can find it on US sites), will I be charged the 35% like I usually am on my credit card for purchases on US sites on top of the 35% tax that is already included in the price of the ticket? Does anyone know for sure?

the 35% tax is just one tax, it is not 2 different things. It is towards Arg income tax ( deductible if you are en blanco ) I guess tourists with foreign cc see it on their statements as " travel tax " simply because their income is non taxable in Arg ( basically a sneakyexcuse to keep chargin everybody travelling to Arg ). So yes, you will be charged 35%. I am not sure why you talk about 2 taxes, it is just that one on top of the usual airport fees, fuel, etc. Hope this helps.

Anything you buy in usd with Arg cc will come with the 35% surcharge. In the case of flights, tickets paid with Arg cc and foreign cc by tourists will also come with the 35% included - flights to/from Arg - bought in Arg or abroad or online.

 

[thorsten]

For any purchase made with an Argentine CC abroad you get charged the 35% - this is done automatically and independent of the product you purchase (they don't even know what it is...).

 

[nlaruccia]

Let's simplify everything. Just purchase airline tickets online from a foreign website, Travelocity, Expedia, etc., and forget about who, when, why and where is being charged 35%.

 

[allcraz]

For any purchase made with an Argentine CC abroad you get charged the 35% - this is done automatically and independent of the product you purchase (they don't even know what it is...).

Exactly, this is my point.

Let's say the flight price on Expedia is 1500 dollars. But that $1500 INCLUDES the 35% "travel tax" already for the flight originating in Argentina. Now, if I then purchase that flight with my Argentine CC, the bank sees Expedia as an international purchase and charges me 35% on my Argentine credit card statement for "compras en el exterior." Sorry if I'm not explaining my concern clearly.

 

[thorsten]

The 35% you get charged by using an Argentine CC to buy a product abroad have nothing to do with travelling: the reason is that Argentina decided to use a fake currency conversion rate which creates loopholes. To limit their use, the state taxes 35% on foreign transactions to reduce the gap between official rate and "fair" rate.

 

[nlaruccia]

Then don't use an Argentine credit card.

 

[Greg2231]

I don't know what the story with Delta is, but this is a flight leaving the States if I am looking at it correctly. I think everyone is in agreement that no one should pay this 35% tax or whatever you want to call it on flights originating outside Argentina with a foreign credit card. But if I put in my desired flight originating in EZE in Despegar, Asatej, Expedia, Kayak, Orbitz, whatever - you name it - the prices come out to be the same (at the blue rate). Around 17000 pesos or 1600 dollars give or take.

NO this is not a flight leaving the us, as I explained these are identical flights, but the data copied did not copy and paste that well.
If you care go and run the same flights once at Delta, and once at Expedia, you will see for yourself the difference in price for identical flights.

 

[Greg2231]

So, I'm still not sure about one thing. If I want to book a flight on a U.S. site with an Argentine CC (because I now can't find the flight on any Argentine sites but can find it on US sites), will I be charged the 35% like I usually am on my credit card for purchases on US sites on top of the 35% tax that is already included in the price of the ticket? Does anyone know for sure?

if the transaction is processed outside of Argentina, Yes you will be charged 35% for using your CC outside of Argentina, whether the 35% charged for international travel is also been collected is questionable, as you have to know if they are issuing the ticket ex Argentina or not, most likely you are only paying the 35% for using a credit card abroad, and are avoiding the 35% for international travel, but if you want to post your flight info, and the website involved then I can give a more detailed answer.