Do you know what the leading cause of interline rejections are? Tax mistakes. In fact, mistakes with taxes accounted for over 40% of all first-stage rejections in the IATA Clearing House (ICH) in 2017! This means many partners are making the same mistake over and over again. But now with ATPCO’s help, those mistakes can be avoided entirely.
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Taxes for airlines are more complicated than ever
So why is it that there are so many mistakes happening with taxes? We can all agree that taxes are complicated. And when you add in the further confusion of each country’s government implementing different tax rules, international exchange rates changing daily, airlines disputing with one another regarding billing, and settlement data only being pulled monthly, taxes can become a nightmare to apportion correctly. It’s no surprise that airlines make mistakes, and then come the inevitable rejections from ICH.
ATPCO is the only organization to have a global view of tax processes from distribution to settlement. Because of this capability, we were able to create an end-to-end process to help airlines solve one of their biggest, most time-consuming, and costly problems.
As part of our continuing mission to fuel the future of air travel, and in conjunction with IATA and their initiative to reduce interline rejections, ATPCO has enhanced our Revenue Accounting Settlement Service (RASS) to provide industry-standard tax calculation on all tickets processed. Within this stand-alone service, we have rolled out a new solution, the ATPCO Tax Reference service.
This new service will allow airlines to submit tickets for interline tax calculation and then be confident that the submitted ticket won’t get rejected. This Tax Reference service ensures you can close the gaps between distribution and settlement, setting yourself up for continued success.
Aeromexico leaves tax rejections behind
Aeromexico was all too familiar with the pain ICH rejections caused due to tax mistakes. Every rejection cost them time and money. They needed to find a solution.
After learning about the new ATPCO Tax Reference service, Aeromexico quickly realized the importance of implementing this service into their own settlement process. They knew the industry needed a change in how it deals with taxes, and they saw that this solution will help fuel the future of change.
Aeromexico, in partnership with their revenue accounting service provider Miatech, will be the first airline to begin reaping the benefits from the ATPCO stand-alone Tax Reference service.
“For us, it was about becoming rejection free. If you want to eliminate rejections, then you need to close the gaps and have a consistent tax reference from distribution to settlement, and ATPCO allows that.” – Raymundo Javier Toledo Tovar, Revenue Accounting Manager, Aeromexico
Stop making costly mistakes
When you’re ready to stop dealing with the frustrations of having your ICH submissions be rejected due to tax mistakes, we’re here for you.