Koodo Community

Community

Solved

Why am I being taxed on the price before taxes?


I have a $60 plan in which I receive a $10 discount for byod. I'm new to Koodo and I noticed on this bill that the HST tax says "7.80" (I live in Ontario, it's 13%.) so what's happening is I'm being charged tax for $60 instead of $50 which should be $6.50. The same thing happens on my previous bill. Have you guys noticed this? Is this normal?

18 replies

Userlevel 7
Badge +4
Hello Kristen,

The discount will be applied on your 2-3rd bill from Koodo. So the first 2-3 months you'll be paying 60$/month
Thanks Robert, I mad e a mistake in the title. I'm getting a discount of ten dollars but the amount being taxed is from $60 and not $50.
Userlevel 7
Badge +4
Well if yo already have the discount, then I think the amount of taxes apply to the amount before the discount. So it goes bill > taxes > discount... That's the only logical explanation.
Userlevel 7
Badge +4
The credit koodo is offering is a rebate of $10 a month. This means that whatever the cost of your bill comes to, they give you $10 back. The credit is applied to the total bill, not to the pre-tax amount, therefore tax would still be charged for the full amount.
To piggy back on this question, I have a friends and family discount on my plan, and for the past year I've been paying the discounted price plus HST of discounted price.  On the most current bill, I was charged regular price + HST of regular price minus EPP discount.  Why did that change?
Userlevel 7
Badge +4
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

A few others have noticed this. It appeared to be a glitch in Koodo's system. Just get in contact with them and they can help you out.
Userlevel 7
Badge +4
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

Friends ad Family discount is not a glitch folks. The discount expires after 1 year and has to be renewed by resubmitting the form. 
Userlevel 7
Badge +4
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

Andrea said she is still getting the EPP discount. Just tax is getting charged wrong? Thats why i said it seems to be a glitch unless tax is indeed supposed to be charged that way.
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

Definitely been a Koodo customer for over a year...  I'll call them and ask.
Userlevel 7
Badge +4
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

Sorry Andrea! I thought the discount has dropped off. On second read I see what you are asking now and I'm pretty sure revenue Canada has changed something in terms of what we pay taxes after. If you look at the percentage it hasn't changed. However as of May we are paying taxes after the full amount and not the discounted one. :-( 
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

I talked to the agent on the phone and he confirmed that starting in May, we are charged taxes on the pre-discount price. 😞
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

Charging tax on full amount, rather than pre-tax total doesn’t sound right. Think of this-when purchasing a sale item, tax is charged on sale price rather than regular price. Same logic applies here. I’d like to see something from Koodo substantiating this ‘new’ tax treatment from CRA.
Userlevel 7
Badge +4
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

The CRA already knows. It was their idea. https://www.ctvnews.ca/mobile/politics/fact-check-are-employee-discounts-taxed-or-not-1.3627828
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

I appreciate the response but don’t understand how this article is relevant to the conversation, as the article is about reporting employee merchandise discounts as taxable income.
Userlevel 7
Badge +4
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

https://www.thebalancesmb.com/how-do-i-charge-gst-hst-on-discounts-2948154
Userlevel 5
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

@Olga the difference is this isn't being treated as a sale, it's being treated as a rebate.  If you were to buy a $100 item at Best Buy that has a $20 rebate, they are going to calculate your $100+tax amount and then apply the $20 rebate.  
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

Plus, why blame Koodo. They dont get any of the tax so why would they charge more unless they didn't have to.
Andrea wrote:

To piggy back on this question, I have a friends and family discount on my plan, and for the past...

@Mats-you’re the only one laying blame here. The inquiry is a Q/A type of discussion.

Reply