topic GST on Voucher? in Get Support

GST on Voucher?

warpdrive — Tue, 04 Jan 2022 21:17:06 GMT

I picked up a voucher at shoppers drug mart this morn and was charged GST for it. This seems strange to me. Normally buying gift cards, such as iTunes cards, You are normally charged for the exact amount the card is for??? I figuered the gst should be charged when you buy a add on or renew your plan cycle?? Or am I missing something here?

Re: GST on Voucher?

mhaider — Fri, 04 Nov 2016 17:02:01 GMT

When the voucher is applied to your account, it deducts the value from your base price.

For example if your plan is $120 for 90 days and you buy a voucher for $100 and apply to your account, it will deduct $100 from your base price.

$120 - 100 = $20

and will charge you tax on $20 amount.

Now, if you don't pay HST on the $100 voucher, technically you would be avoiding paying taxes completely that's why they charge you HST on the voucher. Don't worry you won't be paying tax again when you apply the voucher on your account.

Re: GST on Voucher?

stonechucker — Fri, 04 Nov 2016 17:21:47 GMT

@warpdrive,

As will all payment methods, if you are in a provice that charges taxes, the applicable taxes will be charged at the time of payment.

So whether you buy a voucher, or use AutoPay, taxes are charged for the service your are paying for.

Example: In Ontario, a $120 voucher will have $15.60 in taxes. Same as AutoPay, etc...

I hope this helps.

Re: GST on Voucher?

Luddite — Fri, 04 Nov 2016 17:26:13 GMT

Even paying your account with credit card the quoted cost is without HST. Taxes are added when the charge goes through to your credit card, but your account balance shows all funds excluding taxes.

So, for example, you add $100 dollars to your account. If in Ontario your credit card is charged $113 and your PM account shows a credit of $100.

Re: GST on Voucher?

warpdrive — Fri, 04 Nov 2016 19:38:34 GMT

Makes sense. Thanks!