topic Taxed twice using vouchers? in Get Support

Taxed twice using vouchers?

Taydaysdead — Sun, 09 Feb 2025 03:52:14 GMT

This confuses me. I have a credit on my account so I will owe only $20 on my renewal date. That's $22.60 after tax. We can't top up with credit cards where I am. But if I go and buy a $20 voucher at the store, it's taxed. So I pay $22.60 for the voucher, yet only $20 goes into my PM account toward my plan.
Then when renewal day comes around, it charges me $22.60, which I already paid the tax for when I bought the voucher. So I'm being taxed twice essentially? I don't understand. Buying vouchers means I pay $5.20 in just tax, just to pay my plan, when I should only owe tax on it once, which would be $22.60. Please help me understand...

Re: Taxed twice using vouchers?

tonisage — Sat, 08 Feb 2025 19:08:22 GMT

If you intend to buy $20 voucher value from the store and you pay $22.60 after tax. $20 sorted value will go to you PM when you load it.

You shouldn't be tax again because it's on your PM available funds and only the value of the subscription plan will be deducted.

Re: Taxed twice using vouchers?

tonisage — Sat, 08 Feb 2025 19:09:22 GMT

Is this a hypothetical situation or it happened to you?

Re: Taxed twice using vouchers?

Taydaysdead — Sat, 08 Feb 2025 19:10:42 GMT

It's about to happen, I thought about it just before posting because I need to buy a voucher today

Re: Taxed twice using vouchers?

Taydaysdead — Sat, 08 Feb 2025 19:12:24 GMT

So if I load the $20 with a voucher and all I owe before tax is $20 for my plan, it won't tax it when it deducts the $20 for my plan?

Re: Taxed twice using vouchers?

hTideGnow — Sat, 08 Feb 2025 19:23:04 GMT

hi @Taydaysdead

for voucher, you paid tax when you buy and PM won't tax you for renewal after you load the voucher as Available Funds

So, you have a $20 voucher and loaded as Available Funds, let say your plan is $25, after the $20 available funds used ,PM will charge yieh $5 + tax (not the tax for $25 but just tax of that $5) on your credit card only . So, no double tax problem

Re: Taxed twice using vouchers?

tonisage — Sat, 08 Feb 2025 19:23:32 GMT

If you load 20$ voucher, you will only be taxed at the store. So you'll get your 20$ value into your available funds

Re: Taxed twice using vouchers?

Sansan — Sat, 08 Feb 2025 20:33:58 GMT

@Taydaysdead what you do need to keep on mind though is that some merchants charge a voucher top up fee. You'd have to ask the store first if they do or not. The fee will probably be equal to or more than the tax.

Re: Taxed twice using vouchers?

DennyCrane — Sat, 08 Feb 2025 20:34:25 GMT

It's not taxed twice. It's taxed when you buy the voucher. If your plan is $35 and you buy $35 in vouchers, you'll pay the tax on top of the $35 when you buy it. Once it's loaded to your account it'll apply the $35 to your plan cost at next renewal, and you won't pay more tax at that point.

I do it all the time.

Re: Taxed twice using vouchers?

Taydaysdead — Sat, 08 Feb 2025 20:39:40 GMT

Thank you! The store I bought it from doesn't charge an extra fee !

Re: Taxed twice using vouchers?

DennyCrane — Sat, 08 Feb 2025 20:43:18 GMT

Most brick and mortar retailers won't charge fees, but online stores like recharge will. I buy mine at 7-11 for 5x credit card points. No extra fees, but tax of course.