Food & Drink

I was charged full HST for prepared food under $4 today.

  • Last Updated:
  • Oct 11th, 2017 6:50 pm
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sam123 wrote:
Sep 30th, 2017 9:44 pm
Good point. They're making extra profit. Report them.
This is false, unless "they" is the government. The government is getting all 32 of those cents totalled right or wrong.
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MrWhiteCoffee wrote:
Oct 1st, 2017 10:09 am
McDonald's charges full hst on pop too
I don't know about pop, but they don't charge full hst on coffee.
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No Frills wrote:
Oct 1st, 2017 10:45 am
This is false, unless "they" is the government. The government is getting all 32 of those cents totalled right or wrong.
Yep.
If it was a shop doing it on paper/cash it could be possible they're pocketing the difference and calculating the "correct" (5%) amount to remit.
But it looks like a modern POS that has it out on the line.
When they close the books, everything totalled by the POS on the HST line is going to be remitted.
The government is getting the extra $, not the business.

If you want to convince them to change, the simplest way to approach this would have been to say: "Did you know you don't have to charge full HST on items under $4? This could help your sales as people will see their cost is lower than before"
Show them there's a benefit in it for the business, not just the customer.
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MrWhiteCoffee wrote:
Oct 1st, 2017 10:09 am
McDonald's charges full hst on pop too
Pop itself is not heated and is charged HST. But if purchased with a qualifying meal, it becomes exempt.
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manutdcanada wrote:
Sep 30th, 2017 9:31 pm
It isn't about that. It's about the fact that they were insistent that they've been doing it for years and that they've been doing nothing wrong at all. That's what got to me. It's the principle of it and the attitude towards it, rather than the amount.
Report them then
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manutdcanada wrote:
Oct 1st, 2017 3:44 pm
Pop is not considered a prepared food.
The ironic part is that you can ask that they punch in the iced tea code at a self serve pop location...and freely fill the empty cup up with pop.
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I've seen shady restaurants do crazy things like put tips before taxes, then make you pay taxes on tips, then pocket the difference. Sure report them. Why not?
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badOne wrote:
Oct 2nd, 2017 12:30 am
I've seen shady restaurants do crazy things like put tips before taxes, then make you pay taxes on tips, then pocket the difference. Sure report them. Why not?
Op sorry for threadjacking.

FYI. This is how it's supposed to work, though I don't agree with it.

This bothered me, so I looked into it. Turns out that's how the CRA wants it to be.

https://www.canada.ca/en/revenue-agency ... t-hst.html
"if you add a mandatory or a suggested amount to the customer's bill as a service charge, you have to charge GST/HST on that amount."
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OP...you just need to delete your thread :) [at the end of the day...the restaurant is likely reporting and giving the money to the CRA;)

go back to the restaurant and ask them to change their register...

this is nothing compared to restaurants that give you a bill with tax...and then only accept cash!

i'll give you some examples:

Phoenix Restaurant (Markham)
Food courts at First Markham place (especially the ones that use a calculator and nothing gets punched into the cash register), pretty much a lot of food courts.
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Nov 29, 2013
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Purchase a pop alone tax is 13%. But pop and fries if under $4 tax becomes 5%. A MEAL under $4 is 5% but a drink alone is not considered a meal so tax is 13%.
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Jkavafian wrote:
Oct 2nd, 2017 12:12 pm
Purchase a pop alone tax is 13%. But pop and fries if under $4 tax becomes 5%. A MEAL under $4 is 5% but a drink alone is not considered a meal so tax is 13%.
Great point, but NOT when it's iced tea.

Here's another one of life's great mysteries:

Why is it that I can go to Shopper's drug mart and pay 99 cents (no tax) for one full litre of Lipton iced tea, but the same bottle over at Dollarama is 82 cents plus 13% tax???
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playnicee1 wrote:
Oct 3rd, 2017 2:31 am
Great point, but NOT when it's iced tea.

Here's another one of life's great mysteries:

Why is it that I can go to Shopper's drug mart and pay 99 cents (no tax) for one full litre of Lipton iced tea, but the same bottle over at Dollarama is 82 cents plus 13% tax???
Are both identical ingredient-wise?
IIRC iced tea is tax exempt if it's actually tea (to whatever proportion).
If it's mystery brown sweet water, it might not be exempt.
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aqnd wrote:
Oct 3rd, 2017 6:32 pm
Are both identical ingredient-wise?
IIRC iced tea is tax exempt if it's actually tea (to whatever proportion).
If it's mystery brown sweet water, it might not be exempt.
Go to Dollarama and buy a Lipton iced tea 1 litre bottle for 82 cents plus tax (not the 591 ml bottle-the smaller size is taxable at both stores) and buy a Lipton iced tea 1 Litre bottle at Shoppers for 99 cents and see for yourself. Same bottle. Different stores.
Taxable at Dollarama, no tax at Shoppers.
IIRC PC flavoured iced tea has no tax on the 2 Litre bottle at Loblaws and no frills but it has not been real iced tea for a few years now. (or at least an iced tea with real tea in the ingredient list)
When they changed the recipe (making it a cheaper, lower quality product) they did not change from being a no tax item.
Other store brands are still selling 2 Litre iced tea with real tea and no tax...hopefully that won't change.

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