why did i get charge tax on free product?

[yvon]

Hi everyone!

I was at sdm and ct earlier this week to get my free product for listerine and glade automatic spray refill both store charge me tax for free product. I thought if a product is free there will be no tax on it. The listerine was $4.99 got a coupon for $5 and glade automatic spray refill is $11.99 have a fpc. Should I be complaining or is this correct? Please explain why both store charge me tax.

tyia,

yvon

[hollyquaiscer]

If the fpc said that tax is included, then you should have mentioned that to them. Some fpc's do not include the tax. As for the listerine, sdm does not give overages, so if the price was 4.99 and you had a 5 coupon, they would enter the coupon at 4.99, you have to pay the tax. Just because a coupon is for more than the product doesn't mean you automatically don't have to pay tax, you must read the fine print on all coupons or fpc's to find this out.

[MangoFruit]

Post above is completely wrong. If it says "free" its free, there is no tax, ever. doesn't have to say a thing about tax, BY LAW there is no tax. Entire threads here on this.

Actually i think the above post is correct.

Only if the coupon says "GST, HST, any any other applicable taxes are included in the face value of this coupon," then the tax is included with the coupon. Most FPCs tend to say that. Some coupons say "tax is not included, consumers have to pay tax."

Also back to post.

Tax is applied before coupon, not after, so there is tax on the listerine: 4.99 x (HST). Hence, if you were from vancouver it will be 4.99 x 1.12 - 5.00.

[annedougherty]

Post above is completely wrong. If it says "free" its free, there is no tax, ever. doesn't have to say a thing about tax, BY LAW there is no tax. Entire threads here on this.

Yeah, I've given up saying this And as I've said before, most loblaws banner stores actually have a chart at the cash to figure out the amount of tax to deduct, so they should be well aware although you may have to remind them. There are articles on taxes and FPC's if you google them. Even for BOGO coupons, you do not pay tax on the free one.

However, a $5 coupon, is a coupon, not an FPC, even though the coupon makes it free. So indeed you pay tax on that.

[Queenmoly]

Wal-Mart charges you tax on the full price unless the coupon says "GST, HST, any any other applicable taxes are included in the face value of this coupon," - if there is no mention of taxes they also charge you the tax even if the coupon says the value of the coupon is higher than the price of the item example
Free item costs $3.00 and the value of the coupon is up to $4.00, they will only take off $3.00 , write the $3. in the box on the coupon, and charge you the tax - to avoid taxes, try and redeem FPC at Zellers as they ring all in with no tax