(Resolved) Subsidized phone - Sales tax on full price?
Big edit
I'm very stupid, I redid the math and it balances out:
The way I thought was the "correct" way of billing
[ 65$ plan + 42.16$ phone - 27.17$ subsidy ] x 1.149905 (sales tax) = 91.98$
The way Fido does their billing
[ 65$ plan - 27.17$ subsidy ] x 1.149905 (sales tax) + 48.48$ (phone with tax) = 91.98$
Their calculation is a bit confusing to the clients interpreting it, but I guess it made more sense to their accounting/legal department.
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Maybe I forget about this at every renewal (hardware upgrade), but is it normal that I am charged sales taxes on the full price of the phone even when it is subsidized?
I just renewed with Fido and their pricing structure changed. Now they charge you every month to pay back the phone downpayment.
So, for the S10e certified pre-owned, the before tax price is 1,012$.
The promotion is that I get a 27.17$/month subsidy.
On the website, it says the phone would be 14.99$/month (1,012$ / 24 - 27.17$)
However, on my final bill, it says that I will be paying 21.31$ for the phone!
What they did is this:
1,012$ x 1.14975 (GST/PST) = 1,163.55$ / 24 = 48.48$ - 27.17$ subsidy = 21.31$
That feels like a cheap trick, considerig the website advertised 14.99$.
14.99$ + tax = 17.23$, so I'm paying 4.08$/month more than I anticipated.
Is this standard procedure? I feel like I might have forgotten this little cheap trick at every renewal, since I'd pay up front the taxes, if there were any.
I'm very stupid, I redid the math and it balances out:
The way I thought was the "correct" way of billing
[ 65$ plan + 42.16$ phone - 27.17$ subsidy ] x 1.149905 (sales tax) = 91.98$
The way Fido does their billing
[ 65$ plan - 27.17$ subsidy ] x 1.149905 (sales tax) + 48.48$ (phone with tax) = 91.98$
Their calculation is a bit confusing to the clients interpreting it, but I guess it made more sense to their accounting/legal department.
/////////////////////////////
Maybe I forget about this at every renewal (hardware upgrade), but is it normal that I am charged sales taxes on the full price of the phone even when it is subsidized?
I just renewed with Fido and their pricing structure changed. Now they charge you every month to pay back the phone downpayment.
So, for the S10e certified pre-owned, the before tax price is 1,012$.
The promotion is that I get a 27.17$/month subsidy.
On the website, it says the phone would be 14.99$/month (1,012$ / 24 - 27.17$)
However, on my final bill, it says that I will be paying 21.31$ for the phone!
What they did is this:
1,012$ x 1.14975 (GST/PST) = 1,163.55$ / 24 = 48.48$ - 27.17$ subsidy = 21.31$
That feels like a cheap trick, considerig the website advertised 14.99$.
14.99$ + tax = 17.23$, so I'm paying 4.08$/month more than I anticipated.
Is this standard procedure? I feel like I might have forgotten this little cheap trick at every renewal, since I'd pay up front the taxes, if there were any.
Last edited by alkizmo on Feb 7th, 2020 6:59 am, edited 3 times in total.