Consumption Taxes

Overview

Consumption tax refers to a tax imposed on the purchase of goods or services. Common types of consumption taxes include value-added tax (VAT), goods and services tax (GST), and sales tax.

Tax information may be displayed in the shop response so customers can clearly understand the taxes applied to their purchases. This detailed tax data should also pass correctly to downstream order management systems to support accounting needs. Additionally, tax information must remain accessible for processes such as reshopping, refunds, and cancellations.

Consumption Tax Examples:

If an airline or supplier needs to represent a consumption tax that’s included in the price, the model covers these scenarios:

Percentage Consumption Tax included in price/amounts without tax code

This use case showcases how to communicate consumption tax that applies on base fare amount, selected taxes and commission.

It is based on currently applicable rules imposed by Italian Government which impose application of the consumption tax on fares for domestic flights, commission paid out to the agents and on air traffic taxes which are levied as part on price, are generally subject to consumption tax.

Certain Consumption Taxes apply without an existing industry tax code

Following table include information on amounts used in the example together with the calculation formula for the VAT applied.

Following code snippet showcases how the information related to consumption tax is to be used in messages:

<!-- Commission element -->
<Commission>
	<Amount CurCode="EUR">4.50</Amount>
	<TaxableInd>true</TaxableInd>
</Commission>
<!-- Snippet focuses on consumption tax contains only elements needed for calculation -->
<Price>
	<BaseAmount CurCode="EUR">95.00</BaseAmount>
	<ConsumptionTaxes>
		<ConsumptionTax>
			<ConsumptionTaxInfo>
				<AppliesToText>BaseFare</AppliesToText>
				<GrossAmount CurCode="EUR">95.00</GrossAmount>
				<IncludedInd>true</IncludedInd>
				<NetAmount CurCode="EUR">86.36</NetAmount>
				<TaxableBaseAmount CurCode="EUR">86.36</TaxableBaseAmount>
				<TaxableGrossAmount CurCode="EUR">95.00</TaxableGrossAmount>
				<TaxAmount CurCode="EUR">8.64</TaxAmount>
				<TaxCode>OU</TaxCode>
			</ConsumptionTaxInfo>
			<ConsumptionTaxPercent>10</ConsumptionTaxPercent>
			<ConsumptionTaxTypeCode>VAT</ConsumptionTaxTypeCode>
			<Jurisdiction>
				<Country>
					<CountryCode>IT</CountryCode>
				</Country>
			</Jurisdiction>
			<NotIncludedTotalTaxAmount CurCode="EUR">0.00</NotIncludedTotalTaxAmount>
			<PointOfSale>
				<Country>
					<CountryCode>IT</CountryCode>
				</Country>
			</PointOfSale>
			<TotalTaxAmount CurCode="EUR">8.64</TotalTaxAmount>
		</ConsumptionTax>
		<ConsumptionTax>
			<ConsumptionTaxInfo>
				<AppliesToText>Taxes</AppliesToText>
				<GrossAmount CurCode="EUR">20.00</GrossAmount>
				<IncludedInd>true</IncludedInd>
				<NetAmount CurCode="EUR">18.18</NetAmount>
				<TaxableBaseAmount CurCode="EUR">18.18</TaxableBaseAmount>
				<TaxableGrossAmount CurCode="EUR">20.00</TaxableGrossAmount>
				<TaxAmount CurCode="EUR">1.82</TaxAmount>
			</ConsumptionTaxInfo>
			<ConsumptionTaxPercent>10</ConsumptionTaxPercent>
			<ConsumptionTaxTypeCode>VAT</ConsumptionTaxTypeCode>
			<Jurisdiction>
				<Country>
					<CountryCode>IT</CountryCode>
				</Country>
			</Jurisdiction>
			<NotIncludedTotalTaxAmount CurCode="EUR">0.00</NotIncludedTotalTaxAmount>
			<PointOfSale>
				<Country>
					<CountryCode>IT</CountryCode>
				</Country>
			</PointOfSale>
			<TotalTaxAmount CurCode="EUR">1.80</TotalTaxAmount>
		</ConsumptionTax>
		<ConsumptionTax>
			<ConsumptionTaxInfo>
				<AppliesToText>Commission</AppliesToText>
				<GrossAmount CurCode="EUR">4.50</GrossAmount>
				<IncludedInd>true</IncludedInd>
				<NetAmount CurCode="EUR">4.09</NetAmount>
				<TaxableBaseAmount CurCode="EUR">4.09</TaxableBaseAmount>
				<TaxableGrossAmount CurCode="EUR">4.50</TaxableGrossAmount>
				<TaxAmount CurCode="EUR">0.41</TaxAmount>
			</ConsumptionTaxInfo>
			<ConsumptionTaxPercent>10</ConsumptionTaxPercent>
			<ConsumptionTaxTypeCode>VAT</ConsumptionTaxTypeCode>
			<Jurisdiction>
				<Country>
					<CountryCode>IT</CountryCode>
				</Country>
			</Jurisdiction>
			<NotIncludedTotalTaxAmount CurCode="EUR">0.00</NotIncludedTotalTaxAmount>
			<PointOfSale>
				<Country>
					<CountryCode>IT</CountryCode>
				</Country>
			</PointOfSale>
			<TotalTaxAmount CurCode="EUR">0.41</TotalTaxAmount>
		</ConsumptionTax>
	</ConsumptionTaxes>
<!-- TFC element -->
	<TFC_Summary>
		<TFC_Info>
			<Amount CurCode="EUR">20.00</Amount>
			<!-- tax amount + Consumption Tax -->
			<AppTypeCode>DEP</AppTypeCode>
			<DescText/>
			<FlightAssociation>
				<DatedOperatingLegRef>
					<DatedOperatingLegRefID>LEG-01</DatedOperatingLegRefID>
				</DatedOperatingLegRef>
			</FlightAssociation>
			<Jurisdiction>
				<Country>
					<CountryCode>IT</CountryCode>
					<CountryName>Italy</CountryName>
				</Country>
			</Jurisdiction>
			<PointOfSale>
				<Country>
					<CountryCode>IT</CountryCode>
					<CountryName>Italy</CountryName>
				</Country>
			</PointOfSale>
			<RefundInd>true</RefundInd>
			<RemittanceResponsibilityCode>OC</RemittanceResponsibilityCode>
			<RemittanceTimeCode>D</RemittanceTimeCode>
			<TFC_Authority>
				<AuthorityTypeCode>GOV</AuthorityTypeCode>
				<AuthorityTypeName>Ministero delle infrastrutture e dei trasporti</AuthorityTypeName>
			</TFC_Authority>
			<TFC_CategoryCode>TT2</TFC_CategoryCode>
			<TFC_Code>IT</TFC_Code>
			<TFC_ComputationDate>2026-02-17</TFC_ComputationDate>
			<TFC_Name>EMBARKATION TAX</TFC_Name>
			<TFC_PublishedValue>
				<RateTypeCode>F</RateTypeCode>
				<TFC_PublishedAmount CurCode="EUR">20.00</TFC_PublishedAmount>
			</TFC_PublishedValue>
		</TFC_Info>
		<TotalAmount CurCode="EUR">20.00</TotalAmount>
	</TFC_Summary>
	<TotalAmount CurCode="EUR">115.00</TotalAmount>
</Price>

Percentage Consumption Tax included in price/amounts with tax code and applied in addition to another Consumption Tax

This use case showcases how to communicate consumption tax that has assigned tax code while fare and TFCs are net of consumption taxes

This use case is based on currently applicable rules imposed by Canadian Government which impose application of the consumption tax on fares for domestic and international flights. Different provinces have different consumption taxes so this information needs to be taken into account as well

Following table include information on amounts used in the example together with the calculation formula for the consumption tax applied.

Following code snippet showcases how the information related to consumption tax is to be used in messages:

<ConsumptionTaxes>
	<ConsumptionTax>
		<ConsumptionTaxInfo>
			<AppliesToText>BaseFare</AppliesToText>
			<GrossAmount CurCode="CAD">433.92</GrossAmount>
			<IncludedInd>false</IncludedInd>
			<NetAmount CurCode="CAD">384.00</NetAmount>
			<NonTaxableInfo>
				<Amount CurCode="CAD">0.00</Amount>
				<ReasonCode>DEFINEDBYJURISDICTION</ReasonCode>
			</NonTaxableInfo>
			<TaxableBaseAmount CurCode="CAD">384.00</TaxableBaseAmount>
			<TaxableGrossAmount CurCode="CAD">433.92</TaxableGrossAmount>
			<TaxAmount CurCode="CAD">49.92</TaxAmount>
			<TaxCode>RC</TaxCode>
		</ConsumptionTaxInfo>
		<ConsumptionTaxPercent>13</ConsumptionTaxPercent>
		<ConsumptionTaxTypeCode>HST</ConsumptionTaxTypeCode>
		<Jurisdiction>
			<Country>
				<CountryCode>CA</CountryCode>
			</Country>
			<CountrySubDivision>
				<CountrySubDivisionCode>ON</CountrySubDivisionCode>
			</CountrySubDivision>
		</Jurisdiction>
		<NotIncludedTotalTaxAmount CurCode="CAD">0.00</NotIncludedTotalTaxAmount>
		<PointOfSale>
			<Country>
				<CountryCode>CA</CountryCode>
			</Country>
		</PointOfSale>
		<TotalTaxAmount CurCode="CAD">49.92</TotalTaxAmount>
	</ConsumptionTax>
	<ConsumptionTax>
		<ConsumptionTaxInfo>
			<AppliesToText>YQ</AppliesToText>
			<GrossAmount CurCode="CAD">29.38</GrossAmount>
			<IncludedInd>false</IncludedInd>
			<NetAmount CurCode="CAD">26.00</NetAmount>
			<NonTaxableInfo>
				<Amount CurCode="CAD">0.00</Amount>
				<ReasonCode>DEFINEDBYJURISDICTION</ReasonCode>
			</NonTaxableInfo>
			<TaxableBaseAmount CurCode="CAD">26.00</TaxableBaseAmount>
			<TaxableGrossAmount CurCode="CAD">29.38</TaxableGrossAmount>
			<TaxAmount CurCode="CAD">3.38</TaxAmount>
			<TaxCode>RC</TaxCode>
		</ConsumptionTaxInfo>
		<ConsumptionTaxPercent>13</ConsumptionTaxPercent>
		<ConsumptionTaxTypeCode>HST</ConsumptionTaxTypeCode>
		<Jurisdiction>
			<Country>
				<CountryCode>CA</CountryCode>
			</Country>
			<CountrySubDivision>
				<CountrySubDivisionCode>ON</CountrySubDivisionCode>
			</CountrySubDivision>
		</Jurisdiction>
		<NotIncludedTotalTaxAmount CurCode="CAD">0.00</NotIncludedTotalTaxAmount>
		<PointOfSale>
			<Country>
				<CountryCode>CA</CountryCode>
			</Country>
		</PointOfSale>
		<TotalTaxAmount CurCode="CAD">3.38</TotalTaxAmount>
	</ConsumptionTax>
	<ConsumptionTax>
		<ConsumptionTaxInfo>
			<AppliesToText>SQ</AppliesToText>
			<GrossAmount CurCode="CAD">39.55</GrossAmount>
			<IncludedInd>false</IncludedInd>
			<NetAmount CurCode="CAD">35.00</NetAmount>
			<NonTaxableInfo>
				<Amount CurCode="CAD">0.00</Amount>
				<ReasonCode>DEFINEDBYJURISDICTION</ReasonCode>
			</NonTaxableInfo>
			<TaxableBaseAmount CurCode="CAD">35.00</TaxableBaseAmount>
			<TaxableGrossAmount CurCode="CAD">39.55</TaxableGrossAmount>
			<TaxAmount CurCode="CAD">4.55</TaxAmount>
			<TaxCode>RC</TaxCode>
		</ConsumptionTaxInfo>
		<ConsumptionTaxPercent>13</ConsumptionTaxPercent>
		<ConsumptionTaxTypeCode>HST</ConsumptionTaxTypeCode>
		<Jurisdiction>
			<Country>
				<CountryCode>CA</CountryCode>
			</Country>
			<CountrySubDivision>
				<CountrySubDivisionCode>ON</CountrySubDivisionCode>
			</CountrySubDivision>
		</Jurisdiction>
		<NotIncludedTotalTaxAmount CurCode="CAD">0.00</NotIncludedTotalTaxAmount>
		<PointOfSale>
			<Country>
				<CountryCode>CA</CountryCode>
			</Country>
		</PointOfSale>
		<TotalTaxAmount CurCode="CAD">4.55</TotalTaxAmount>
	</ConsumptionTax>
	<ConsumptionTax>
		<ConsumptionTaxInfo>
			<AppliesToText>CA</AppliesToText>
			<GrossAmount CurCode="CAD">8.05</GrossAmount>
			<IncludedInd>false</IncludedInd>
			<NetAmount CurCode="CAD">7.12</NetAmount>
			<NonTaxableInfo>
				<Amount CurCode="CAD">0.00</Amount>
				<ReasonCode>DEFINEDBYJURISDICTION</ReasonCode>
			</NonTaxableInfo>
			<TaxableBaseAmount CurCode="CAD">7.12</TaxableBaseAmount>
			<TaxableGrossAmount CurCode="CAD">8.05</TaxableGrossAmount>
			<TaxAmount CurCode="CAD">0.93</TaxAmount>
			<TaxCode>RC</TaxCode>
		</ConsumptionTaxInfo>
		<ConsumptionTaxPercent>13</ConsumptionTaxPercent>
		<ConsumptionTaxTypeCode>HST</ConsumptionTaxTypeCode>
		<Jurisdiction>
			<Country>
				<CountryCode>CA</CountryCode>
			</Country>
			<CountrySubDivision>
				<CountrySubDivisionCode>ON</CountrySubDivisionCode>
			</CountrySubDivision>
		</Jurisdiction>
		<NotIncludedTotalTaxAmount CurCode="CAD">0.00</NotIncludedTotalTaxAmount>
		<PointOfSale>
			<Country>
				<CountryCode>CA</CountryCode>
			</Country>
		</PointOfSale>
		<TotalTaxAmount CurCode="CAD">4.55</TotalTaxAmount>
	</ConsumptionTax>
</ConsumptionTaxes>

Different Percentage Consumption Tax rates within the same one order (multiple rates within one order)

This use case showcases how to communicate consumption taxes that apply with the different percentage rates and that apply on different price components

This use case is based on currently applicable rules imposed by Tahiti Government which imposes application of the 5% consumption tax as well as CPS (Contribution Sociale) of 1% that are included in the fare amount.

Following table include information on amounts used in the example together with the calculation formula for the consumption tax applied.

Following code snippet showcases how the information related to consumption tax is to be used in messages:

<ConsumptionTaxes>
		<ConsumptionTax>
		<ConsumptionTaxInfo>
			<AppliesToText>BaseFare</AppliesToText>
			<GrossAmount CurCode="XPF">100000.00</GrossAmount>
			<IncludedInd>true</IncludedInd>
			<NetAmount CurCode="XPF">98867.92</NetAmount>
			<NonTaxableInfo>
				<Amount CurCode="XPF">80000.00</Amount>
				<ReasonCode>DEFINEDBYJURISDICTION</ReasonCode>
			</NonTaxableInfo>
			<TaxableBaseAmount CurCode="XPF">18867.92</TaxableBaseAmount>
			<TaxableGrossAmount CurCode="XPF">20000.00</TaxableGrossAmount>
			<TaxAmount CurCode="XPF">943.40</TaxAmount>
		</ConsumptionTaxInfo>
		<ConsumptionTaxPercent>5.00</ConsumptionTaxPercent>
		<ConsumptionTaxTypeCode>VAT</ConsumptionTaxTypeCode>
		<Jurisdiction>
			<Country>
				<CountryCode>PF</CountryCode>
			</Country>
		</Jurisdiction>
		<NotIncludedTotalTaxAmount CurCode="XPF">0.00</NotIncludedTotalTaxAmount>
		<PointOfSale>
			<Country>
				<CountryCode>PF</CountryCode>
			</Country>
		</PointOfSale>
		<TotalTaxAmount CurCode="XPF">943.40</TotalTaxAmount>
	</ConsumptionTax>
	<ConsumptionTax>
		<ConsumptionTaxInfo>
			<AppliesToText>BaseFare</AppliesToText>
			<GrossAmount CurCode="XPF">100000.00</GrossAmount>
			<IncludedInd>true</IncludedInd>
			<NetAmount CurCode="XPF">98867.92</NetAmount>
			<NonTaxableInfo>
				<Amount CurCode="XPF">80000.00</Amount>
				<ReasonCode>DEFINEDBYJURISDICTION</ReasonCode>
			</NonTaxableInfo>
			<TaxableBaseAmount CurCode="XPF">18867.92</TaxableBaseAmount>
			<TaxableGrossAmount CurCode="XPF">20000.00</TaxableGrossAmount>
			<TaxAmount CurCode="XPF">188.68</TaxAmount>
		</ConsumptionTaxInfo>
		<ConsumptionTaxPercent>1.00</ConsumptionTaxPercent>
		<ConsumptionTaxTypeCode>CPS</ConsumptionTaxTypeCode>
		<Jurisdiction>
			<Country>
				<CountryCode>PF</CountryCode>
			</Country>
		</Jurisdiction>
		<NotIncludedTotalTaxAmount CurCode="XPF">0.00</NotIncludedTotalTaxAmount>
		<PointOfSale>
			<Country>
				<CountryCode>PF</CountryCode>
			</Country>
		</PointOfSale>
		<TotalTaxAmount CurCode="XPF">188.68</TotalTaxAmount>
      </ConsumptionTax>
</ConsumptionTaxes>

Consumption Tax on ancillary services

This use case showcases how to communicate consumption taxes that apply on a-la-carte services

This use case is based on currently applicable rules imposed by Tahiti Government which imposes application of the 5% consumption tax as well as CPS (Contribution Sociale) of 1% that are included in the fare amount.

Following table include information on amounts used in the example together with the calculation formula for the consumption tax applied.

Following code snippet showcases how the information related to consumption tax is to be used in messages:

<ConsumptionTaxes>
	<ConsumptionTax>
		<ConsumptionTaxInfo>
			<AppliesToText>Ancillary</AppliesToText>
			<GrossAmount CurCode="AUD">99.00</GrossAmount>
			<IncludedInd>false</IncludedInd>
			<NetAmount CurCode="AUD">90.00</NetAmount>
			<TaxableBaseAmount CurCode="EUR">90.00</TaxableBaseAmount>
			<TaxableGrossAmount CurCode="EUR">99.00</TaxableGrossAmount>
			<TaxAmount CurCode="EUR">9.00</TaxAmount>
			<TaxCode>UO</TaxCode>
		</ConsumptionTaxInfo>
		<ConsumptionTaxPercent>10</ConsumptionTaxPercent>
		<ConsumptionTaxTypeCode>GST</ConsumptionTaxTypeCode>
		<Jurisdiction>
			<Country>
				<CountryCode>AU</CountryCode>
			</Country>
		</Jurisdiction>
		<NotIncludedTotalTaxAmount CurCode="EUR">0.00</NotIncludedTotalTaxAmount>
		<PointOfSale>
			<Country>
				<CountryCode>AU</CountryCode>
			</Country>
		</PointOfSale>
		<TotalTaxAmount CurCode="EUR">9.00</TotalTaxAmount>
	</ConsumptionTax>
</ConsumptionTaxes>

Shopping Response Considerations (regarding compliance)

In a shopping response, returning the Consumption Tax Details is optional. Implementers may choose not to include this information to improve speed or reduce the size of the response, for example. However, some requestors may require having this data during shop. It is the implementer’s responsibility to provide the Consumption Tax when required to ensure regulatory compliance.

The accepted Offer that is converted to an Order must contain the Consumption Tax Details.