GUIDE for REFUNDABLE and NON-REFUNDABLE TAXES, FEES, and AC CARRIER SURCHARGE

The refundability rules are mandated by government authorities and contracting third-parties including, but not limited to airports, and are stated below. Air Canada may issue a debit memo to the agency for the value of the taxes, fees, and charges incorrectly refunded.
In the case of an involuntary situation such as a flight disruption (IROP) or a schedule change (SKCH), all tickets are treated as Refundable Fare for tax purposes, even those that are purchased as Non-Refundable Fare.

CA – Canadian Air Travel Security Charge

Applicable per chargeable enplanement in Canada (i.e., Canadian departure at an applicable airport)

	Refundable Fare	Non-Refundable Fare
Unused ticket	Charge is refundable within 2 years of ticket issuance, plus any XG, RC, XQ applicable to the CA charge.	Charge is refundable within 2 years of ticket issuance, plus any XG, RC, XQ applicable to the CA charge.
Partially Used Ticket Including ticket with only one bound, in or out, is used	Charge is refundable within 2 years of ticket issuance, plus any XG, RC, XQ applicable to the CA only if no applicable Canadian departure occurred. If an applicable Canadian departure occurred on the used part of the ticket, the CA charge plus any XG/RC/XQ tax applied to the CA is forfeit.	Charge is refundable within 2 years of ticket issuance, plus any XG, RC, XQ applicable to the CA only if no applicable Canadian departure occurred. If an applicable Canadian departure occurred on the used part of the ticket, the CA charge plus any XG, RC, XQ tax applied to the CA charge is forfeited.
Ticket exchange Fully unused ticket	Full charge is refundable within 2 years of ticket issuance, on a wholly unused ticket plus any XG, RC, XQ applicable to the CA charge if not applicable to new itinerary. Depending on the CA charge applicable to the new itinerary, the residual CA is refunded.	Full charge is refundable within 2 years of ticket issuance, on a wholly unused ticket plus any XG, RC, XQ applicable to the CA charge if not applicable to new itinerary. Depending on the CA charge applicable to the new itinerary, the residual CA is refunded.
Ticket exchange Partially unused ticket	If an applicable Canadian departure occurred on the used part of the ticket, the CA charge plus any XG, RC, XQ tax applied to the CA is forfeit. Where an applicable Canadian departure did not occur on the used part of the ticket, depending on the CA charge amount applicable to the new itinerary, the residual CA is refunded. Only refundable within 2 years of ticket issuance.	If an applicable Canadian departure occurred on the used part of the ticket, the CA tax plus any XG, RC, XQ tax applied to the CA charge is forfeit. Where an applicable Canadian departure did not occur on the used part of the ticket, depending on the CA charge amount applicable to the new itinerary, the residual CA is refunded. Only refundable within 2 years of ticket issuance.

**For itineraries involving ground transportation: “CA” will only be applied on the “enplanement” of applicable airports. Ground transportation departures are not subject to CA. For example, boarding a shuttle bus at YHM to commute for enplanement at YYZ. In this case, the CA tax is chargeable at YYZ.

RC – Harmonized Sales Tax

Calculated as percentage of the base fare (including carrier surcharges) and the CA
Calculated on applicable SQ for departures in the provinces of Ontario, Nova Scotia, New Brunswick, Newfoundland and Prince Edward Island.

	Refundable Fare	Non-Refundable Fare
Unused ticket	Tax is refundable	¹ Tax is not refundable on the forfeit fare. However, tax is refundable as it relates to CA and SQ refunded.
Partially Used Ticket Including ticket with only one bound, in or out, is used	Tax is refundable on the base fare refunded. Tax is refundable on the CA and SQ refunded.	¹ Tax is not refundable on the forfeit fare. However. tax is refundable as it relates to CA and SQ refunded.
Ticket exchange Fully unused ticket	Tax is refundable on the base fare if not applicable to the new itinerary. Tax is refundable on the CA and SQ refunded. Where tax is applicable to the new itinerary, depending on the RC tax amount applicable to the new itinerary, the tax on the residual value (if any) is refundable.	Tax is refundable on the base fare refunded/credited if not applicable to the new itinerary. Tax is not refundable on forfeit fare. Tax is refundable on the CA and SQ refunded. Where tax is applicable to the new itinerary the tax applied to the residual value (if any) is forfeit and is not refundable.

SQ – Airport Improvement Fee

Assessed for departure from applicable airports in Canada

	Refundable Fare	Non-Refundable Fare
Unused ticket	Fee is refundable plus any XG/RC/XQ applicable to the SQ fee.	Fee is refundable plus any XG/RC/XQ applicable to the SQ fee.
Partially Used Ticket Including ticket with only one bound, in or out, is used	Fee is refundable plus any XG/RC/XQ applicable to the SQ only if no Canadian departure at the applicable airport occurred.	Fee is refundable plus any XG/RC/XQ applicable to the SQ only if no Canadian departure at the applicable airport occurred.
Ticket exchange Fully unused ticket	Fee is fully refundable on a wholly unused ticket plus any XG/RC/XQ applicable to the SQ fee if not applicable to new itinerary. Depending on the SQ amount applicable to the new itinerary, the residual SQ fee (if any) is refunded.	Fee is fully refundable on a wholly unused ticket plus any XG/RC/XQ applicable to the SQ fee if not applicable to new itinerary. Depending on the SQ amount applicable to the new itinerary, the residual SQ fee (if any) is refunded.
Ticket exchange Partially unused ticket	If a Canadian departure occurred on the used part of the ticket, the SQ applicable to that Canadian airport plus any XG, RC, XQ tax applied to the SQ is forfeit. Where an applicable Canadian departure did not occur on the unused part of the ticket, depending on the SQ amount applicable to the new itinerary, the residual SQ (if any) is refundable.	If a Canadian departure occurred on the used part of the ticket, the SQ applicable to that Canadian airport plus any XG/RC/XQ tax applied to the SQ applicable to that Canadian airport is forfeit. Where an applicable Canadian departure did not occur on the unused part of the ticket, depending on the SQ amount applicable to the new itinerary, the residual SQ (if any) is refundable.

** For itineraries involving ground transportation: “SQ” will only be applied on the “enplanement” of applicable airports. Ground transportation departures are not subject to SQ. For example, boarding a shuttle bus at YKF to commute for enplanement at YYZ. In this case, the SQ tax is chargeable at YYZ.

XG – Goods and Services Tax

Calculated as percentage of the base fare (including carrier surcharges) and the CA.
Calculated on applicable SQ for departures in the provinces of Quebec, Manitoba, Saskatchewan, Alberta, British Columbia, and the Territories.

	Refundable Fare	Non-Refundable Fare
Unused ticket	Tax is refundable	¹ Tax is not refundable on the forfeit fare. However, tax is refundable as it relates to CA and SQ refunded.
Partially Used Ticket Including ticket with only one bound, in or out, is used	Tax is refundable on the base fare refunded. Tax is refundable on the CA and SQ refunded.	¹ Tax is not refundable on the forfeit fare. However, tax is refundable as it relates to CA and SQ refunded.
Ticket exchange Fully unused ticket	Tax is refundable on the base fare if not applicable to the new itinerary. Tax is refundable on the CA and SQ refunded. Where tax is applicable to the new itinerary, depending on the XG tax amount applicable to the new itinerary, the tax on the residual value (if any) is refundable.	Tax is refundable on the base fare refunded/credited if not applicable to the new itinerary. Tax is not refundable on forfeit fare. Tax is refundable on the CA and SQ refunded. Where tax is applicable to the new itinerary, the tax applied to the residual value (if any) is forfeit and is not refundable.
Ticket exchange Partially unused ticket	Tax is refundable as a percentage of base fare being refunded/credited. Tax is refundable on the CA and SQ being refunded. Depending on the XG tax amount applicable to the new itinerary, the tax on the residual value (if any) is refundable.	Tax is refundable as a percentage of base fare being refunded/ credited. Tax is refundable on the CA and SQ refunded. Tax on the residual value (if any) is forfeit and is not refundable.

XQ – Quebec Sales Tax

Calculated as percentage of the base fare (including carrier surcharges) and the CA.
Calculated on applicable SQ for departures in the province of Quebec.

	Refundable Fare	Non-Refundable Fare
Unused ticket	Tax is refundable	¹ Tax is not refundable on the forfeit fare. However, tax is refundable as it relates to CA and SQ refunded.
Partially Used Ticket Including ticket with only one bound, in or out, is used	Tax is refundable on the base fare refunded. Tax is refundable on the CA and SQ refunded.	¹ Tax is not refundable on the forfeit fare. However, tax is refundable as it relates to CA and SQ refunded.
Ticket exchange Fully unused ticket	Tax is refundable on the base fare if not applicable to the new itinerary. Tax is refundable on the CA and SQ refunded. Where tax is applicable to the new itinerary, depending on the XQ tax amount applicable to the new itinerary, the tax on the residual value (if any) is refundable.	Tax is refundable on the base fare refunded/credited if not applicable to the new itinerary. Tax is not refundable on forfeit fare. Tax is refundable on the CA and SQ refunded. Where tax is applicable to the new itinerary, the tax applied to the residual value (if any) is forfeit and is not refundable.
Ticket exchange Partially unused ticket	Tax is refundable as a percentage of base fare being refunded/credited. Tax is refundable on the CA and SQ being refunded. Depending on the XQ tax amount applicable to the new itinerary, the tax on the residual value (if any) is refundable.	Tax is refundable as a percentage of base fare being refunded/credited. Tax is refundable on the CA and SQ being refunded. Tax on the residual value (if any) is forfeit and is not refundable.

AY – USA Civil Aviation Security Service Fee

Applicable per one-way trip originating at airports in the USA, a maximum amount applies to round trip itineraries.

	Refundable Fare	Non-Refundable Fare
Unused ticket	Fee is refundable	Fee is refundable
Partially Used Ticket Including ticket with only one bound, in or out, is used	Fee is refundable if no US departure occurred.	Fee is refundable if no US departure occurred.
Ticket exchange Fully unused ticket	Fee is fully refundable on a wholly unused ticket if not applicable to new itinerary. Depending on the AY amount applicable to the new itinerary, the residual AY is refunded.	Fee is fully refundable on a wholly unused ticket if not applicable to new itinerary. Depending on the AY amount applicable to the new itinerary, the residual AY is refunded.
Ticket exchange Partially unused ticket	If US departure occurred on the used part of the ticket, the AY is forfeit. Where US departure did not occur on unused part of the ticket, depending on the AY applicable to the new itinerary, the residual AY (if any) is refundable.	If US departure occurred on the used part of the ticket, the AY is forfeit. Where US departure did not occur on unused part of the ticket, depending on the AY applicable to the new itinerary, the residual AY (if any) is refundable.

US – International Air Transportation Tax (flat tax)

The US Congress passed a law in April 2020 that temporary suspended the US tax application on tickets issued on/after March 28, 2020 and before January 1, 2021. Levied for each arrival and departure of any international flight in the United States. For the purpose of this rule, transborder flights are considered international flights.

	Refundable Fare	Non-Refundable Fare
Unused ticket	Tax is refundable	¹ Tax is not refundable
Partially Used Ticket Including ticket with only one bound, in or out, is used	Tax is refundable if no US arrival/departure occurred on the coupons being refunded	¹ Tax is not refundable
Ticket exchange Fully unused ticket	Tax is refundable on a wholly unused ticket if not applicable to new itinerary. If new itinerary results in lower tax than what was originally paid, refund residual.	Tax is refundable on a wholly unused ticket if not applicable to new itinerary. If new itinerary results in lower tax then what was originally paid, refund residual.
Ticket exchange Partially unused ticket	If US arrival/departure occurred on the used part of the ticket, the tax is not refundable on the used part of the ticket. A credit or refund is available if the unused part of the ticket was subject to the tax and the tax does not apply to the new itinerary.	If US arrival/departure occurred on the used part of the ticket, the tax is not refundable on the used part of the ticket. A credit or refund is available if the unused part of the ticket was subject to the tax and the tax does not apply to the new itinerary.

US – Domestic Transportation Tax (percentage tax)

US Congress passed a law in April 2020 that temporary suspended the US tax application on tickets issued on/after March 28, 2020 and before January 1, 2021. Calculated on variable percentage of base fare (including carrier surcharges) dependant on date and airport (rural or non-rural)

	Refundable Fare	Non-Refundable Fare
Unused ticket	Tax is refundable	¹ Tax is not refundable
Partially Used Ticket Including ticket with only one bound, in or out, is used	Tax is refundable on the base fare refunded	¹ Tax is not refundable
Ticket exchange Fully unused ticket	Tax is refundable on the base fare if not applicable to the new itinerary. Where tax is applicable to the new itinerary, depending on the tax amount applicable to the new itinerary, the tax on the residual value (if any) is refundable.	Tax is refundable on the base fare if not applicable to the new itinerary. Where tax is applicable to the new itinerary, the tax applied to the residual value (if any) is forfeit and is not refundable.
Ticket exchange Partially unused ticket	Tax is refundable as a percentage of base fare refunded/ credited if not applicable to new itinerary. Where tax is applicable to the new itinerary, depending on the tax amount applicable to the new itinerary, the tax on the residual value (if any) is refundable.	Tax is refundable as a percentage of base fare refunded/credited if not applicable to new itinerary. Where tax is applicable to the new itinerary, tax on the residual value (if any) is forfeit and not refundable.

**For itineraries involving ground transportation – the fare for ground transportation in Canada is exempt from the “US” 7.5% tax

XA – Animal and Plant Health Inspection Service User Fee

Collected for all passengers arriving in the USA/Puerto Rico from a point outside the United States

	Refundable Fare	Non-Refundable Fare
Unused ticket	Fee is refundable	Fee is refundable
Partially Used Ticket Including ticket with only one bound, in or out, is used	Fee is refundable if no US/Puerto Rico arrival occurred on coupons being refunded.	Fee is refundable if no US/Puerto Rico arrival occurred.
Ticket exchange Fully unused ticket	Fee is refundable on a wholly unused ticket if not applicable to new itinerary.	Fee is refundable on a wholly unused ticket if not applicable to new itinerary.
Ticket exchange Partially unused ticket	If US/Puerto Rico arrival occurred on the used part of the ticket, the XA is forfeit. A credit or refund is available if the unused part of the ticket was subject to the XA fee and the new itinerary is not subject to the XA fee.	If US/Puerto Rico arrival occurred on the used part of the ticket, the XA is forfeit. A credit or refund is available if the used part of the ticket was not subject to the XA fee and the new itinerary is not subject to the XA fee.

XF – United States of America Passenger Facility Charge

Assessed for departure from applicable airports in the United States.

	Refundable Fare	Non-Refundable Fare
Unused ticket	Charge is refundable	¹ Charge is non-refundable
Partially Used Ticket Including ticket with only one bound, in or out, is used	Charge is refundable only if no applicable US departure occurred	¹ Charge is non-refundable
Ticket exchange Fully unused ticket	Charge is fully refundable on a wholly unused ticket if not applicable to new itinerary.	Charge is fully refundable on a wholly unused ticket if not applicable to new itinerary.
Ticket exchange Partially unused ticket	If the applicable US departure occurred on the used part of the ticket, the charge is not refundable. A credit or refund is available if the used part of the ticket was not subject to the XF charge and the new itinerary is not subject to the XF charge (i.e. an applicable US departure did not occur on the used part of the ticket and will not occur on the new itinerary).	If the applicable US departure occurred on the used part of the ticket, the charge is not refundable. A credit or refund is available if the used part of the ticket was not subject to the XF charge and the new itinerary is not subject to the XF charge (i.e. an applicable US departure did not occur on the used part of the ticket and will not occur on the new itinerary).

XY – US Immigration User Fee

Applicable per arrival in the United States

	Refundable Fare	Non-Refundable Fare
Unused ticket	Fee is refundable	Fee is refundable
Partially Used Ticket Including ticket with only one bound, in or out, is used	Fee is refundable if no US arrival occurred on coupons being refunded.	Fee is refundable if no US arrival occurred.
Ticket exchange Fully unused ticket	Fee is refundable on a wholly unused ticket if not applicable to new itinerary.	Fee is refundable on a wholly unused ticket if not applicable to new itinerary.
Ticket exchange Partially unused ticket	If US arrival occurred on the used part of the ticket, the XY is forfeit. A credit or refund is available if the unused part of the ticket was subject to the XY fee and the new itinerary is not subject to the XY fee.	If US arrival occurred on the used part of the ticket, the XY is forfeit. A credit or refund is available if the used part of the ticket was not subject to the XY fee and the new itinerary is not subject to the XY fee.

YC – US Customs User Fee

Applicable per each international arrival in the United States

	Refundable Fare	Non-Refundable Fare
Unused ticket	Fee is refundable	Fee is refundable
Partially Used Ticket Including ticket with only one bound, in or out, is used	Fee is refundable if no US international arrival occurred on coupons being refunded.	Fee is refundable if no US international arrival occurred.
Ticket exchange Fully unused ticket	Fee is refundable on a wholly unused ticket if not applicable to new itinerary.	Fee is refundable on a wholly unused ticket if not applicable to new itinerary.
Ticket exchange Partially unused ticket	If US international arrival occurred on the used part of the ticket, the YC is forfeit. A credit or refund is available if the unused part of the ticket was subject to the YC fee and the new itinerary is not subject to the YC fee.	If US international arrival occurred on the used part of the ticket, the YC is forfeit. A credit or refund is available if the unused part of the ticket was subject to the YC fee and the new itinerary is not subject to the YC fee.

ZP – Flight Segment Tax

The US Congress passed a law in April 2020 that temporary suspended the ZP tax application on tickets issued on/after March 28, 2020 and before January 1, 2021. ZP tax is in addition to the US Domestic Transportation Tax (US percentage tax) and applies for each segment for wholly domestic travel in the United States.

	Refundable Fare	Non-Refundable Fare
Unused ticket	Tax is refundable	¹ Tax is not refundable
Partially Used Ticket Including ticket with only one bound, in or out, is used	Tax is refundable if applicable segment was not flown.	¹ Tax is not refundable
Ticket exchange Fully unused ticket	Tax is refundable if not applicable to the new itinerary.	Tax is refundable if not applicable to the new itinerary.
Ticket exchange Partially unused ticket	A credit/refund is available if the unused part of the ticket was subject to the tax, and the new itinerary is not subject to the tax.	A credit/refund is available if the unused part of the ticket was subject to the tax, and the new itinerary is not subject to the tax.

International Taxes

If there is no mention of the tax being non-refundable, taxes are then considered to be refundable in circumstances where the ticket was not flown or partially flown. For clarity, Taxes calculated on a % basis of the base fare (including carrier surcharges) are non-refundable as it relates to the forfeited fare unless specified otherwise.

International tax	Tax Name	Refundability
CR – Costa Rica	Transportation Tax	Refundable by customer’s request to the Costa Rican Tourism Institute, as Air Canada is not allowed to refund it directly due to country regulations.
DO – Dominican Republic	Transportation Tax	Refundable on the unutilized portion of service, if within 30 days of ticket issuance. Not refundable on forfeited amounts.
E2 – Ecuador	Infrastructure Tax	Not refundable.
E3 – Saudi Arabia	Security Charge	Refundable within 1 day for unused tickets, non-refundable in all other cases.
EC – Ecuador	Government Transportation Tax	Refunds allows only on completely unused tickets. No refunds on forfeit amounts.
ED – Ecuador	International Tourism Fee	Not refundable.
K3 – India	Goods and Services Tax	Not refundable on forfeit amounts. With partially or complete unused tickets, tax is non-refundable after 214 days of the ticket issuance.
L8 – Dominican Republic	Tourism Tax	Only refundable by customer’s request to the Dominican Republic authority, as Air Canada is not allowed to refund it directly due to country regulations.
NV – Norway	Domestic Value Added Tax	NV on fares, taxes and surcharges is not refundable on non-refundable amounts.
O7 – Jordan	Security Charge	Refundable within 1 day for unused tickets, non-refundable in all other cases.
PA – Panama	Value Added Tax	Not refundable on forfeit amounts. Tax on partially used or complete unused tickets is non-refundable after 180 days of the ticket issuance.
PE – Peru	Sales Tax	Permitted on fully unused tickets if within 30 days of ticket issuance.
Q7 – Egypt	Stamp Tax	Refundable within 1 day for unused tickets, non-refundable in all other cases.
S4 – Egypt	International Advanced Passenger Information Fee	Refundable within 1 day for unused tickets, non-refundable in all other cases.
UO – Australia	Goods and Services Tax	Refundable on the unutilized portion of service. Not refundable on forfeit amounts.
XL – Egypt	Developmental Stamp Duty	Refundable within 1 day for unused tickets, non-refundable in all other cases.
XS – Sweden	Value Added Tax	XS on fares, taxes and surcharges is not refundable on non-refundable amounts.
All other % taxes, including but not limited to: AG, AR, BB, DL, HT, JP, KN, LC, MX, OU, QN, TT, VC, XO, YS		Refundable on the unutilized portion of service. Not refundable on forfeit amounts.

Information subject to change without notice

Carrier Surcharges - YQ International Fuel Surcharge and YR Direct Connect Recovery Fee

YQ is applicable per one-way trip to/from international destinations. The variable rate is determined by each airline based on different routes. YR is applicable per ticket to/from all destinations. Rates are determined by Air Canada.

	Refundable Fare or Refundable with a penalty	Non-Refundable Fare (In the case of an involuntary situation, all tickets are treated as Refundable Fare for tax purposes)
Unused ticket	YQ and YR are refundable²	YQ and YR are non-refundable. Exception for tickets issued in AU, HK, KR and TW: YQ is refundable and will be processed manually
Partially Used Ticket	YQ on unused part of the ticket is refundable² YR is non refundable	YQ and YR are non-refundable. Exception for tickets issued in AU, HK, KR and TW: YQ is refundable and will be processed manually
Ticket exchange	YQ surcharge is refundable on a wholly unused ticket if not applicable to the new itinerary. Where YQ is applicable to the new itinerary, surcharge is partially refundable on a wholly unused ticket (exchanges prior to departure) if the YQ applicable to the new itinerary is a lower amount. YR surcharge will be applied to the exchanged ticket.	YQ surcharge is non-refundable on a wholly unused ticket if not applicable to the new itinerary. On a wholly unused ticket (exchanges before departure) where YQ is applicable to the new itinerary, the surcharge difference is non-refundable if the YQ applicable to the new itinerary is a lower amount. YR surcharge will be applied to the exchanged ticket. Exception for tickets issued in AU, HK, KR and TW: YQ is refundable and will be processed manually.

¹ Where AC policy is to refund or credit a non-refundable fare, please refer to the Refundable Fare column
² Percentage taxes on Carrier Surcharges are refundable if the surcharge is refunded
V4 – revised September 20, 2024