Explain charges please

[jessicasadee]

So my plan it 40$  I pay 39.10 after rewards rewards tax is added. I was having card issues this week and made a payment to my account  of balance due 40$  , my bill isn't even due for a week and never pay in advance as I am on auto pay. I only wanted to pay the 40$  which is what it was I was paying  amount to due. Yet 46$ has come off my card. But my account only reflects 40$ . If the 46$ ( 6$ ) is for taxes then I shouldn't get charged tax again on the same money when my charge comes off why is that 6$ not reflecting in my payments and only on my cc statement. How can I be charged taxes on something I haven't purchased yet. 

[darlicious]

@jessicasadee 

This may help you understand.

Normally with autopay you see this:

Plan amount : $40-$6 (rewards)=$34+$5.10 (15% tax)=$39.10 charged to your card.

This time you topped up your account anticipating....amount owing for your plan amount : $40.

$40+$6 (15% tax=$6)=$46 ( you confirmed and submitted this amount) $40 is in your balance and your card is showing a charge for $46.

Upon renewal $6 in rewards will be applied to your balance. $40+$6=$46-$40 (plan amount)=$6 remaining in your account balance. Your next renewal you will have $6 in rewards applied to your balance $6+$6=$12 If you allow it to go to autopay the system will take the $12 from your balance first and charge the remainder to your card. $40-$12=$28+(15% tax=$4.20)=$32.20 charged to your card.

You can always view your estimated payment for renewal by going to your rewards page in your account. It will subtract any funds in your balance+your estimated rewards ( as referral and community rewards can fluctuate) and display the remaining amount owing. After your next renewal you will see that amount ( as explained above) listed as $28.  Currently that estimated amount will be listed as $0.

[AE_Collector]

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@will13am wrote:

@jessicasadee , all the amounts shown in the self serve account are pre-tax amounts.  

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I would say the correct wording would be “After Tax” amounts. (Tax has been paid). I see what you are saying (plan cost before tax was added to the account ) but the term “pre tax” to me implies that tax will be taken off of it leaving a lower amount to go on your account.

AE_Collector

[softech]

@jessicasadee  PM does not show Tax your Self-serve.  So, when PM said you owe $40, when you pay, they charges you $40+tax

It's confusing, but that is the way it is.

But.. PM is good, they only tax on the amount they charge.  So, if you have reward to bring the price down, they won't charge tax on the lower amount, not on the full original amount.

[will13am]

@jessicasadee , all the amounts shown in the self serve account are pre-tax amounts.  I assume you have a 15% tax level based on your phone number area code which is why $46 is taken for a $40 top up as reflected in the self serve account.  With respect to the $39.10 payment you are used to seeing during renewal, the $34 is the actual top up for renewal.  If you look at your rewards, you should have $6 credited.  When the next renewal takes place, only $34 of the $40 will be consumed leaving $6 in account funds, assuming your rewards do not change by the time the next renewal takes place.  

[Dunkman]

@jessicasadee 

The Public mobile payment system can be confusing.  

It looks like that you loaded up $40 into your available funds.  You have not paid for your plan next week, but did load up funds for future payment.  You are correct that you are paying $40 + taxes (provincial and GST). 

You will not be charged another round of taxes on your next week payment.  Your rewards will be used up first and then available funds (ie. $40).  Your credit card will not be charged next week.   After your payment next week, you will likely have some available funds for your next payment.  Your rewards/autopay should lower your bill.  

[wetcoaster · Accepted solution]

Look at it this way: you are purchasing available funds, tax are added to that. That's the "outside" connection.

Then, as your renewal comes around, the payment cycle WITHIN your account no tax are added.

Edited to add link to my older write-up:

https://productioncommunity.publicmobile.ca/t5/Paying-for-your-service/Taxes-not-added-in-payment-hi...