Do Reward Points Bill Credit Apply Before or After Tax?

[funpig1]

I am just wondering what to expect in the future with this new to me points reward system.

For example, if I had a $25 plan, I would have to pay $25 + $3 tax = $28 before any rewards.   (Tax is 5%GST + 7% PST)

What happens if I have a $15 points reward bill credit?

Do I end up paying either:

A. ($25 - $15 credit) + $1.20 tax = $11.20

or

B. ($25 + $3 tax) - $15 credit = $13.00?

Under the old legacy reward system, it was the cheaper A calculation. Just wondering if the calculation will be different under the new points reward system.

I am just one tax payer.  When there are hundreds of thousands of us, it adds up.

[EB0]

You will pay taxes on the remaining balance

A (25 - 15) + 1.2 = 11.20

keep in mind, you will not earn point back 5% on the redeem amount

Based on your plan without referral, you may be able to redeem $15 once or twice a year..

[ORNGNBLK · Accepted solution]

From personal experience: When I use my $15 bill credit and my revised bill is for $10, I only pay tax on the revised bill.

Long story short, you will pay $10 (Revised bill after credit) + 12% (or whatever your provincial tax rate is) = $11.20 in your case.