Why am I being taxed on the price before taxes?

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  • Updated 12 months ago
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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?
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Kristen

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  • confused

Posted 1 year ago

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Robert, Mobile Master

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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
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Kristen

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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.
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Robert, Mobile Master

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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.
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Timo Tuokkola, Mobile Master

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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.
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Andrea

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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?
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Bernard, Official Rep

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Friends ad Family discount is not a glitch folks. The discount expires after 1 year and has to be renewed by resubmitting the form. 
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Allan, Mobile Master

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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.
(Edited)
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Andrea

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Definitely been a Koodo customer for over a year...  I'll call them and ask.
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Bernard, Official Rep

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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. :-( 
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Andrea

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