Food & Drink

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

  • Last Updated:
  • Oct 11th, 2017 6:50 pm
Deal Addict
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Mar 31, 2005
3253 posts
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Calgary
Kasakato wrote:
Sep 30th, 2017 10:54 pm
Its not illegal for the restaurant to collect the full HST; it then becomes your job to file form GST189 to receive the rebate. I would be interested to see if you receive a direct deposit for the few cents.
"Point of sale rebate" means you get the discount at the till.
Deal Expert
Mar 25, 2005
20875 posts
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TotallyKiller wrote:
Oct 4th, 2017 3:18 pm
"Point of sale rebate" means you get the discount at the till.
And it's not mandatory. What is the point?
Deal Addict
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Mar 31, 2005
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Calgary
Kasakato wrote:
Oct 4th, 2017 7:27 pm
And it's not mandatory. What is the point?
Pretty sure if the rebate is to be applied at the till at the time of sale (again, what "point of sale rebate" means), that it is actually unlawful for them to force it back on the consumer for submission. Otherwise every business owner would do it.

Could totally be wrong though. I didn't look it up. Feel free to post links if you got em.
Jr. Member
Nov 29, 2013
108 posts
37 upvotes
I believe coffee is considered prepared food but not bottled or packaged drinks. It could just be a programming error of the POS system. Not worth making a big fuss about it. Chances are the merchant is remitting the full 13% HST to revenue Canada.
Deal Guru
Feb 9, 2012
11081 posts
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Toronto
Mulder and Scully wrote:
Oct 5th, 2017 8:34 pm
Freshii charges the full HST for food under $4 as well *sigh*
They're not supposed to. Now THAT could easily be a mistake.
Deal Guru
Feb 9, 2012
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Toronto
Jkavafian wrote:
Oct 5th, 2017 5:25 pm
I believe coffee is considered prepared food but not bottled or packaged drinks. It could just be a programming error of the POS system. Not worth making a big fuss about it. Chances are the merchant is remitting the full 13% HST to revenue Canada.
Bottled iced tea 1 litre or larger is not taxable. I believe it's Dollarama in the wrong, not Shopper's drug mart.
Dollarama is actually shooting themselves in the foot because the idea is to keep prices down, not to tax if they don't have to...
Sr. Member
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May 22, 2016
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Ontario
4 pages means HST rules are waaaaaay too complicated.
Deal Guru
Feb 9, 2012
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Toronto
webshark wrote:
Oct 6th, 2017 1:14 am
4 pages means HST rules are waaaaaay too complicated.
It changes from Province to Province. The $4 or less rule is for Ontario, but I'm not sure about the iced tea rule...just know it's not taxable at all as a 1 Litre bottle or larger in Ontario.
Deal Expert
Mar 25, 2005
20875 posts
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TotallyKiller wrote:
Oct 5th, 2017 2:42 pm
Pretty sure if the rebate is to be applied at the till at the time of sale (again, what "point of sale rebate" means), that it is actually unlawful for them to force it back on the consumer for submission. Otherwise every business owner would do it.

Could totally be wrong though. I didn't look it up. Feel free to post links if you got em.
I've never heard of a regulation requiring the POS rebate. The end consumer would use form GST189, reason code 16 to claim the PST portion.
Deal Addict
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Jan 27, 2007
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Peterborough
Kasakato wrote:
Oct 7th, 2017 10:42 pm
I've never heard of a regulation requiring the POS rebate. The end consumer would use form GST189, reason code 16 to claim the PST portion.
It is not illegal for a business to collect HST when a POS rebate can be applied:

https://www.canada.ca/en/revenue-agency ... rages.html

See the section under "How to claim the rebate."

For those that dont click - it is applied at the point of sale, OR by filing a rebate claim (i.e. GST189).
Deal Addict
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Oct 25, 2009
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Moncton
The solution is to tax everything and increase the GST/HST rebate for the “poor” like me. Rich people that pay extra for “organic” (prepared at home by the nany) pay 0% sales tax, but working stiffs that buy a relatively healthy salad near work must pay HST.
Toronto is a very small part of Canada
Sr. Member
Jan 31, 2016
792 posts
538 upvotes
Toronto, ON
Been noticing the same issue with several McDonald's locations lately. Being charged 13% HST on $3.99 happy meal purchases. What once totalled $4.19 including tax is now $4.39 or so. Oddly enough, $3.99 plus 13% should be $4.50. What part of the happy meal is getting taxed at 13%?
Deal Guru
Feb 9, 2012
11081 posts
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Toronto
dotsandpixels wrote:
Oct 10th, 2017 9:45 pm
Been noticing the same issue with several McDonald's locations lately. Being charged 13% HST on $3.99 happy meal purchases. What once totalled $4.19 including tax is now $4.39 or so. Oddly enough, $3.99 plus 13% should be $4.50. What part of the happy meal is getting taxed at 13%?
That sounds like the 5% tax went through twice as an illegal 10% tax.
Deal Fanatic
Apr 20, 2011
7278 posts
2296 upvotes
ON
I would guess pop and toy are taxed and food is not.
I doubt their POS has changed, it used to be set up as base meal + side + drink + toy line items. (you could sub drink/side for whichever and toy could be subbed for cookies if they so chose)

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