Taxes

[leda]

Sorry, I know this has been discussed, but I'm still confused and can no longer find the thread I saw it discussed on. Can someone please tell me how taxes are suppose to work when using coupons?

I went into WalMart to have something price matched down to $5.99, and then used $5 off each of them (x4) but I ended up having to pay nearly $8 because of taxes.

Am I suppose to be paying taxes on the full amount (since at this particular time, they were price matching) sale amount, or amount after coupon???

Thank you

[gunsguy]

Sorry, I know this has been discussed, but I'm still confused and can no longer find the thread I saw it discussed on. Can someone please tell me how taxes are suppose to work when using coupons?

I went into WalMart to have something price matched down to $5.99, and then used $5 off each of them (x4) but I ended up having to pay nearly $8 because of taxes.

Am I suppose to be paying taxes on the full amount (since at this particular time, they were price matching) sale amount, or amount after coupon???

Thank you

If it says customer pays taxes on coupon (which they normally do) then you pay taxes on full retail ammount

[BC Gal]

Other than free items (like a FPC), consider a coupon like money. The tax is on the price of the item, so you would be taxed on the price match cost, but before the subtraction of the coupons.

On full priced coupons (``get a free...``) you have to read the fine print as each is different; many say includes taxes up to a certain amount, but only a few include all the taxes no matter what the cost of the item. It`s good to know ahead of time if taxes are included so the cashier can ring that item in first, subtotal, and find out the price to subtract.

[leda]

Thanks guys

So for a FPC, you aren't paying taxes on it at all? I get the meaning is free, lol, but I wasn't sure if that meant before taxes.

[abbasgirl]

Here's the thread that talks about the CRA guidelines for taxes and coupons.
http://forum.smartcanucks.ca/184178-...-rules-canada/
In your case, the store did it right by charging tax on the full price before deducting the coupon. For FPCs, it doesn't matter whether the coupon says taxes are included or not. They are not supposed to be charged to the consumer. But you will have to carry the guidelines with you and/or point out the wording on the coupon every time because most stores charge taxes automatically.

[leda]

Thank you!