Shopping Discussion

Amazon Charging More After Order?

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[OP]
Sr. Member
Jan 4, 2008
911 posts
392 upvotes
Mississauga

Amazon Charging More After Order?

I ran into an interesting situation with my Amazon order.

I ordered an item, when the price came up, it showed me a specific amount. I split my purchase between my remaining gift card balance and my credit card.

However, once the item shipped, it's now listed as me having to pay even more money. The reason being that taxes are now included.

I don't have an issue with being charged taxes on the item, but when I ordered the item it did say a specific price, and that taxes were $0 on it (unfortunately I don't have proof except for the original confirmation email which shows the order total that I had to pay with my credit card, an amount which is now higher).

So what could I do here? Bring this up with Amazon (its only a several dollar extra charge, but it's the principle behind it)? Doesn't seem right that I'm being billed more than the price I agreed to pay when I clicked on complete order.

While posting this thread, I checked other orders and the same thing has happened too. It claimed no taxes when I clicked complete order, but suddenly they charged taxes AFTER the item shipped.

Does this only happen when you pay using your credit card? I'd imagine if you had a $10 gift card, bought a $10 item, they couldn't suddenly charge you $11 after the fact since your card didnt have that balance on it, but a credit card can be billed more.
48 replies
Sr. Member
Apr 16, 2019
763 posts
1226 upvotes
Did you call or chat with online to see what happened and why they did that?

If they charge tax they have to state that clearly on an invoice, no?
Deal Addict
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Aug 18, 2008
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Did you order before July 1st, and it shipped out some time after that?

I know a recent law change came into effect where purchases on the Apple Store & Google Play store now need to collect HST on all purchases. Maybe it's the same for Amazon purchases too?
[OP]
Sr. Member
Jan 4, 2008
911 posts
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Mississauga
iMarketing wrote: Did you call or chat with online to see what happened and why they did that?

If they charge tax they have to state that clearly on an invoice, no?
The order details NOW says it, but originally it didn't, but the email they sent when the order first happened didnt have an invoice or anything. I guess I could try contacting them to see what's up.
Akitakara wrote: Did you order before July 1st, and it shipped out some time after that?

I know a recent law change came into effect where purchases on the Apple Store & Google Play store now need to collect HST on all purchases. Maybe it's the same for Amazon purchases too?
I placed my order earlier this week.
Deal Guru
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Mar 12, 2004
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Guelph
As of July 1st, I believe amazon charges tax on sellers located outside of Canada. Before they didnt collect.
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Sr. Member
Mar 8, 2013
545 posts
2069 upvotes
Toronto
I just had what you have described happen for an order that was created on the 5th and was shipped out on the 6th.

The item was sold by a third party and fulfilled by Amazon. The total amount charged when the order was created did not have tax like with a lot of third party sellers. I paid by gift certificate.

The morning before the order was shipped, the order details was changed so that the gift certificate deduction amount was higher than the item on the order, leaving a negative "grand total." (i.e. item was $26.54, no tax, free ship, -$29.99 gift cert -> grand total = -$3.45). Then when it shipped later in the day, a value of $3.45 was added as an estimated GST/HST in the order details, bringing the grand total back to $0.00. I live in Ontario where sales tax is 13%, so that $3.45 tax amount for a $26.54 item is correct but since the total is now $29.99, I think it was an amount set by the 3rd party seller.

And ever since Amazon stopped sending the details of the order in their order confirmation emails, I have no record of what the amount was at the time of order (it just says $0.00 when you use a gift cert). Incidentally, if I create a new order and go through the check out process right before submitting, the grand total amount is like my original order amount without any extra charges.
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Jan 9, 2011
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squall458 wrote: As of July 1st, I believe amazon charges tax on sellers located outside of Canada. Before they didnt collect.
Not exactly. Amazon is now responsible for collecting and remitting GST/HST on items sold by third party Marketplace sellers, instead of the third parties themselves. It doesn't matter where the seller is physically located. This does *not* apply to items shipped from outside of Canada. https://www.amazon.ca/gp/help/customer/ ... =202211260

I made an Amazon seller account several years ago, for the sole purpose of selling two textbooks I no longer needed. I sold both, I never collected any tax from the buyer and the buyer never paid any. But now Amazon would collect it from the buyer.

This seems like a bug that the taxes aren't disclosed to the buyer at purchase time and are taken from the buyer's credit card later. It shouldn't be that way. If taxes are not specified and collected at payment time, they should be deemed to have been included in the price.
[OP]
Sr. Member
Jan 4, 2008
911 posts
392 upvotes
Mississauga
Kiraly wrote:
This seems like a bug that the taxes aren't disclosed to the buyer at purchase time and are taken from the buyer's credit card later. It shouldn't be that way. If taxes are not specified and collected at payment time, they should be deemed to have been included in the price.
Exactly.

If they "forgot" to charge people taxes, how can you retroactively go back and charge them more?

Imagine going to a restaurant, they charge you a price, you pay it, then days later they charge you more because they forgot to charge you tax? That's not allowed at all, and sounds almost illegal to me (its already illegal charging no taxes in these cases, but then going back and charging a customer more than they agreed to when checking out sounds even more illegal). Sounds like the kind of story that would end up on some consumer report in the news.

I chatted with them and they said they'll escalate this to their tax specialists and get back to me. We'll see what happens here, as I'm sure theres a case against them charging more after someone agreed to a price and has a written confirmation email as proof.
Sr. Member
Mar 8, 2013
545 posts
2069 upvotes
Toronto
It does seem to be a tax bug that doesn't reflect the recent July 1st changes by Amazon for 3rd party sellers.

In my example, order summary before placing it on July 5th:
Image

Order invoice before it shipped on July 6th:
Image

Order invoice after it shipped:
Image
Deal Addict
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Oct 2, 2005
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I have an invoice showing 0$ tax and hasnt shipped. Printed to PDF. Will dispute if the price changes after shipping.

Update from customer service after i am billed more:
There is an ongoing issue with the taxes applied to some of the Amazon.ca orders.
We are working on this. I am forwarding your Order details to our billing team. So that they will correct this and update you via email in maximum 48 hours.

Please be assured Amazon won't charge you any extra amount for your Order, please allow our billing team to fix this for you in 48 hours.
Newbie
Jun 15, 2018
69 posts
66 upvotes
dxbender wrote: Exactly.

If they "forgot" to charge people taxes, how can you retroactively go back and charge them more?

Imagine going to a restaurant, they charge you a price, you pay it, then days later they charge you more because they forgot to charge you tax? That's not allowed at all, and sounds almost illegal to me (its already illegal charging no taxes in these cases, but then going back and charging a customer more than they agreed to when checking out sounds even more illegal). Sounds like the kind of story that would end up on some consumer report in the news.

I chatted with them and they said they'll escalate this to their tax specialists and get back to me. We'll see what happens here, as I'm sure theres a case against them charging more after someone agreed to a price and has a written confirmation email as proof.
RAINMAN0 wrote: I have an invoice showing 0$ tax and hasnt shipped. Printed to PDF. Will dispute if the price changes after shipping.

Update from customer service after i am billed more:
Same thing just happened to me, and I found this thread.

I'm sure any business has all kinds of creditors to which they owe money (gov't taxes, rent, salaries, utilities, invoices, etc) and these have nothing to do with what I authorize to pay them for service. Going back later to take an unauthorized amount is either:
  1. a mistake if they did it unintentionally
  2. theft if they did it intentionally

Gonna complain!
Deal Addict
Nov 4, 2011
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While not in the spirit of RFD, I generally let automated tax mistakes slide at large retailers. I'm under the assumption that they'll remit all the tax they collect at the point of sale, rather than recalculating it later and then remitting it to the govt. So worst case, the govt gets a few extra bucks from me, I'm not going to lose sleep over that. I could recover it with receipts, but haven't bothered (I normally see tax errors on foods that shouldn't be taxed).
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Oct 13, 2007
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dxbender wrote: I ran into an interesting situation with my Amazon order.

I ordered an item, when the price came up, it showed me a specific amount. I split my purchase between my remaining gift card balance and my credit card.

However, once the item shipped, it's now listed as me having to pay even more money. The reason being that taxes are now included.

I don't have an issue with being charged taxes on the item, but when I ordered the item it did say a specific price, and that taxes were $0 on it (unfortunately I don't have proof except for the original confirmation email which shows the order total that I had to pay with my credit card, an amount which is now higher).

So what could I do here? Bring this up with Amazon (its only a several dollar extra charge, but it's the principle behind it)? Doesn't seem right that I'm being billed more than the price I agreed to pay when I clicked on complete order.

While posting this thread, I checked other orders and the same thing has happened too. It claimed no taxes when I clicked complete order, but suddenly they charged taxes AFTER the item shipped.

Does this only happen when you pay using your credit card? I'd imagine if you had a $10 gift card, bought a $10 item, they couldn't suddenly charge you $11 after the fact since your card didnt have that balance on it, but a credit card can be billed more.
When you made your order, you will have seen that it stated "estimated taxes" as @Callister's screenshot his order summary. This is no different than the government introducing a tax change in a budget effective the next day. You have no option but to pay the taxes in effect at the time of the charge.
Newbie
Jun 15, 2018
69 posts
66 upvotes
starchoice wrote: When you made your order, you will have seen that it stated "estimated taxes" as @Callister's screenshot his order summary. This is no different than the government introducing a tax change in a budget effective the next day. You have no option but to pay the taxes in effect at the time of the charge.
I must respectfully disagree on two points.
First, the gov of Can website (link) states that the seller is responsible to collect the GST and the seller must disclose the GST amount to the customer. In this case the seller had every opportunity to disclose an amount and they chose to disclose an amount of zero. Disclose certainly does not mean to "tell at a later time".

Second, no tax laws changed in the interval between when the buyer authorized the payment and when extra money was taken from the buyer.

It should be pretty simple contract law that a seller can't just take extra money after the buyer authorized a certain amount for the transaction. Otherwise there's nothing stopping a seller from saying "my heating bill went up, so I'm taking an extra $1000 on this transaction".
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Oct 13, 2007
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btwpg999 wrote: I must respectfully disagree on two points.
First, the gov of Can website (link) states that the seller is responsible to collect the GST and the seller must disclose the GST amount to the customer. In this case the seller had every opportunity to disclose an amount and they chose to disclose an amount of zero. Disclose certainly does not mean to "tell at a later time".

Second, no tax laws changed in the interval between when the buyer authorized the payment and when extra money was taken from the buyer.

It should be pretty simple contract law that a seller can't just take extra money after the buyer authorized a certain amount for the transaction. Otherwise there's nothing stopping a seller from saying "my heating bill went up, so I'm taking an extra $1000 on this transaction".
Take it up with Amazon. It’s clear to me tax is owed. It’s not clear to you. Guaranteed you will not win this one.
Newbie
Jun 15, 2018
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starchoice wrote: Take it up with Amazon. It’s clear to me tax is owed. It’s not clear to you. Guaranteed you will not win this one.
Sure, tax is owed. Just like the seller owes rent, property tax, salaries etc. It is their responsibility to fulfil those obligations from the agreed price that they charged. That is the point I'm raising with them. If nobody raises it with them, then they'll just keep doing the dishonest bait-n-switch practice.
Deal Addict
Sep 3, 2005
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Toronto
So.... anyone got their money back yet?

I have few orders like that as well, It’s just. annoy they change the charge amount after item is shipped.
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Sep 3, 2006
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spy cl wrote: So.... anyone got their money back yet?

I have few orders like that as well, It’s just. annoy they change the charge amount after item is shipped.
Why would you? It's tax. You need to pay it.
This isn't a blog.
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Jan 9, 2011
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jcon wrote: Why would you? It's tax. You need to pay it.
Like I mentioned earlier, if the taxes were not listed separately and collected at payment time, they should be deemed to be included in the price. Including taxes in the price, while not common, is legal in Canada and does happen sometimes. The problem is not having to pay taxes, the problem is to pay one mutually-agreed-on price, and then have more money charged on your credit card later without your knowledge or consent, which is not legal. Amazon could be double dipping on the taxes for all we know. What if there were doing this with other things? Eco fees? Fuel surcharge? Other mystery fees? All of this needs to be disclosed at payment time.
Deal Addict
Sep 3, 2005
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Toronto
jcon wrote: Why would you? It's tax. You need to pay it.
As long as Amazon doesn’t charge different amount on my credit card, I am ok.. but that’s not the case here.

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