Shopping Discussion

Coupons used in grocery

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  • Oct 6th, 2019 8:09 pm
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[OP]
Jr. Member
Mar 26, 2019
170 posts
56 upvotes

Coupons used in grocery

I dont know if this is the right category to ask this question, but here if i have coupons on a yoghurt example; yop 50cents off, this discount apply before tax and you pay tax on subtotal of price of the yoghurt minus coupon.

Wanted to know because i recently bought this item was charged tax on original price not one after discount.

Thank you. I live in Quebec
8 replies
Deal Addict
Jun 21, 2016
3116 posts
1082 upvotes
SKYhigh75f wrote: I dont know if this is the right category to ask this question, but here if i have coupons on a yoghurt example; yop 50cents off, this discount apply before tax and you pay tax on subtotal of price of the yoghurt minus coupon.

Wanted to know because i recently bought this item was charged tax on original price not one after discount.

Thank you. I live in Quebec
1) Yes they did it right
2) just curious how much more did they charge you? Seems like an insignificant amount to bicker about
Deal Fanatic
User avatar
Jun 19, 2001
9001 posts
2724 upvotes
yes, a specific discount is charged tax on the price without the coupon. However, free or buy one get 1 free manufacturer coupon means no tax on the free item. But many stores get that wrong.
Deal Guru
Nov 15, 2008
11740 posts
6650 upvotes
Well it's not no tax on the free item, it's that the free product coupon covers the cost of the item including tax. Unless the till has a specific method for cashiers to enter FPCs, the cashier has to whip out a calculator to figure that out in order to get the value of the coupon. It's much easier for them just not, and use the item price alone.
Deal Fanatic
User avatar
Jun 19, 2001
9001 posts
2724 upvotes
Nope, no tax on a free item after a manufacturer coupon is used for a free or buy 1 get 1 free. MOST store have a button to remove it automatically (like shoppers drugmart). Some do not, and that contributes to the problem.

"BOGO, or buy one, get one free coupons, or
bullet

different discount amount depending on the size of item purchased, such as $1.00 off the price of a one litre container of a taxable product or $2.50 off of the price of a two litre container of the same product

With this type of coupon, the GST or HST is calculated based on the amount after deducting the value of the coupon."
Deal Guru
Mar 14, 2005
13811 posts
2499 upvotes
Yop is a single serve yogurt and therefore subject to tax. The cashier will correctly ring up the price of the yogurt + full tax, then subtract the 50c coupon.
Deal Addict
User avatar
Aug 3, 2006
4864 posts
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SKYhigh75f wrote: if i have coupons on a yoghurt example; yop 50cents off, this discount apply before tax and you pay tax on subtotal of price of the yoghurt minus coupon.
Wanted to know because i recently bought this item was charged tax on original price not one after discount.
This is correct. The manufacturer reimburses the seller the value of the coupon, and the seller reimburses the buyer. E.g., You buy an item that's $1 and use a $0.50 off coupon. You pay $1 + taxes, and save $0.50 on the total. The seller submits the received coupons to the manufacturer who reimburses the seller the total value of coupons received.
[OP]
Jr. Member
Mar 26, 2019
170 posts
56 upvotes
toronto19850 wrote: 1) Yes they did it right
2) just curious how much more did they charge you? Seems like an insignificant amount to bicker about
Total before coupon: 30$ minus 15$ coupon=15 + tps(1,50)+tvq(3)=19.50$ in all.

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