Why charge the taxes on an extra payment?

[Dolphin12]

I'm confused by this. Can someone help me understand. Maybe it's my error but not sure.

I had to change my payment method yesterday and since I have read there were issues with others changing their card numbers I decided to test it out. I charged $5 to the new card but it added HST of 65 cents. I figured that would show on my account but no it is only showing a $5 credit.

I created a ticket and was told the tax will not show and I will only see a $5 credit. How is this right if I paid $5.65? Can someone help shed some light on this as I'm confused.

[Dolphin12]

@hTideGnow thank you for breaking it down for me. It now makes sense. I just wasn't understanding it before.

[hTideGnow · Accepted solution]

hi @Dolphin12 there is no lost to you at all

example for $15 plan

you pay $15 + tax if you pay by autopay

now, you load $5 , they charge you $5+ tax and put $5 credit in your account 

Renewal time come, your plan is $15, but they are not charging $15 + tax since you have $5 credit already from earlier top-up 

The remaining $10 will be charged to your card and they only charge your the tax on the $10 outstanding 

the accounting has nothing wrong 

[Dolphin12]

That does not make sense to me but I guess it's my loss 

[hTideGnow]

hi @Dolphin12 

this is normal.  everything , at least most, needs to pay tax in Canada

when you buy $5 mobile service, it is normal PM will add tax in it. It will show $5 on My Account because it is $5 value you can apply to your service 

if you plan is $15.  On next renewal, It will deduct $5 on renewal and. charge $10+ tax during renewal time