Taxed twice using vouchers?

[Taydaysdead]

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...

[DennyCrane]

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. 

[Taydaysdead]

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

[DennyCrane · Accepted solution]

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.

[Sansan]

@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.

[tonisage]

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

[hTideGnow]

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

[Taydaysdead]

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? 

[Taydaysdead]

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

[tonisage]

Is this a hypothetical situation or it happened to you?

[tonisage]

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.