NO Tax on Free Items

[Starbaby55]

i just bought dog food the other day and paid the tax Im pissed i should go back

This *almost* happened to me at PetSmart. The cashier wasn't understanding when I was telling her that there should be no tax. She just kept saying "i can't take off the tax". So i asked for the Manager. He said the same thing, until I showed him where on the coupon it stated that tax was included. I was also using a B1G1, so I suggested we do 2 seperate transactions so that I could get the cat food (FPC) free and pay the tax on the B1G1. He got so flustered and angered he just gave me everything for free (pressed some button. I noticed on the screen F4 said "remove tax" so I was asking him if this was applicable? because he had no idea how to remove the tax). The cashier was saying "uh, but what do they pay" and hes like "NOTHING!" and shes like "but they had a B1G1" and hes like "oh forget it". I offered to pay for the half of the B1G1 (79 cents plus tax) but he said just to forget it. So i walked out feeling kind of crappy, but happy that I stood my ground.

[couponmummy]

If I have a taxable FPC, I will either use it at SDM and get it punched in as 2002, or use it at Zellers and get 10% SPC and pay a few pennies.

[nscouponchick]

Zellers will mostly take the tax off for FPC's. Most time, I'm not bothered by tax, so long as the item is still free!

[couponmummy]

Zellers will mostly take the tax off for FPC's. Most time, I'm not bothered by tax, so long as the item is still free!

I think you said you work for Zellers.

Lots of times when I use taxable FPCs, they will ring in as regular item and then take off amount after taxes, so you pay taxes.

I have seen other cashiers punch in another button that will take off amount before taxes so you pay no taxes. Get paid to take home. Do you know which button I'm talking about?

Either way, it's good for me because I get 10% SPC.

[MayaChen]

do we have to pay for hst on FPC now? since there is no RST anymore..

[BC Gal]

It really depends on the coupon I think. Like the Nesquick; it says taxes are included up to a certain value (so does the cottonelle wipes, and many others). It is not the same as a replacement voucher - those are the only ones that say they include taxes right on them. The ones that do not specify is where the government policy comes in, right? (though I am in BC which probably means the gov't wants the tax money every chance possible).

[abbasgirl]

It doesn't depend on what the coupon says (and never has). Here's the thread that talks about the CRA guidelines (for all of Canada):
http://forum.smartcanucks.ca/184178-...-rules-canada/
FPCs are under "Other coupons."
You will need to bring the guidelines with you or point out the wording on the coupon (if it says taxes are included) every time because most stores don't take the tax off automatically, which is why so many people are confused and think they have to pay them.

[BC Gal]

Wow thanks abbasgirl! Well, you would think companies would get it together and not over tax the customer! The wording on the fpc's just adds to the confusion.

From my understanding then, the coupons should be taken off pre-tax; not one place I shop at has done that. Walmart looks like it does, but the taxes add up to pre-coupon price. Why? It's not like the extra tax money benefits them. Are all stores breaking the laws?

[abbasgirl]

Wow thanks abbasgirl! Well, you would think companies would get it together and not over tax the customer! The wording on the fpc's just adds to the confusion.

From my understanding then, the coupons should be taken off pre-tax; not one place I shop at has done that. Walmart looks like it does, but the taxes add up to pre-coupon price. Why? It's not like the extra tax money benefits them. Are all stores breaking the laws?

For regular coupons, the tax should be charged on the full amount, before the coupon is deducted. For FPCs and BOGO coupons, the tax should not be charged to the consumer at all.

[BC Gal]

For regular coupons, the tax should be charged on the full amount, before the coupon is deducted. For FPCs and BOGO coupons, the tax should not be charged to the consumer at all.

Thanks for clearing that up. I went back to the CGA website and found where it says about reimbursable coupons here: http://www.cra-arc.gc.ca/tx/bsnss/tp...brsbl-eng.html

So non-reimbursable would be like Loblaw's? (because it is their own coupons) I was reading the non-reimbursable and thinking all coupons - oops, heehee.

[abbasgirl]

Thanks for clearing that up. I went back to the CGA website and found where it says about reimbursable coupons here: http://www.cra-arc.gc.ca/tx/bsnss/tp...brsbl-eng.html

So non-reimbursable would be like Loblaw's? (because it is their own coupons) I was reading the non-reimbursable and thinking all coupons - oops, heehee.

That's right!

[MayaChen]

It doesn't depend on what the coupon says (and never has). Here's the thread that talks about the CRA guidelines (for all of Canada):
http://forum.smartcanucks.ca/184178-...-rules-canada/
FPCs are under "Other coupons."
You will need to bring the guidelines with you or point out the wording on the coupon (if it says taxes are included) every time because most stores don't take the tax off automatically, which is why so many people are confused and think they have to pay them.

thanks!

[Ciel]

Cashier training may just extend to how to operate the till for regularly taxable transactions and how to indicate method of payments and how to void a transaction.

Depending on what kinds of transactions the store usually experiences, some cashiers will be told how to deal with coupons, no tax situations (for individuals with tax exemption cards) and other items that come up. Small independent stores likely have just some verbal and hands on training for any cashiers but nothing in way of hard copy material except any notes made by trainees. Been there done that.

At the checkouts, those stores that have binders and written coupon policies for cashiers are up to date. However, actual retail acts don't likely come up during the main hands-on training of which buttons to push, how to subtotal or how to show different payment methods on one transaction.

Getting store or cash managers involved for the coupons with the tax included transactions is better than relying solely on a cashier who may or may not know the tax rules re: those coupons. As one SCer posted, her pet store experience shows that the manager did not know. Couldn't he have called head office to get instructions? Guess he does not know the rules either.

[BC Gal]

Caution Walmart shoppers: Walmart cashiers have to manually take off tax on B1G1 or other free items that would normally be taxed. They are happy to do so, but there is no special button or code, so either the item has to be put through first, hit subtotal, then deduct that amount, or they have to use a calculator and figure out the amount to deduct.

Last thing any Canadian needs is to be even more overtaxed!

[maliha44]

Caution Walmart shoppers: Walmart cashiers have to manually take off tax on B1G1 or other free items that would normally be taxed. They are happy to do so, but there is no special button or code, so either the item has to be put through first, hit subtotal, then deduct that amount, or they have to use a calculator and figure out the amount to deduct.

Last thing any Canadian needs is to be even more overtaxed!

Thanks, that makes sense. I think the Walmart lady charged me tax on the free skinny cow icecream last week.