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  • Dec 25th, 2019 10:21 pm
[OP]
Deal Addict
User avatar
Apr 23, 2006
1172 posts
180 upvotes
GTA

Taxes with price match

Hi
I was trying to get Dyson Canada to price match another Canadian retailer. In order to price match, I need to place the order first (eg pay the full price and tax on the full price). Then, email their support to get the price adjustment.
However, they are only willing to pay me back the price difference before tax. They claimed that they can't pay back the difference in taxes because that's regulated by government.

I think their reason does not make sense, because
1) No one would bother with price match when they can pay less with the retailer with the lower price.
2) Since tax is a percentage of product price and they are matching the price, the tax should be recalculated on the price change.
3) This has never happened to me with other retailers such as Best Buy or Staples.

Just want to ask what other RFDers think and anything I can do with this situation.
Thanks in advance.
12 replies
Deal Guru
User avatar
Jan 9, 2011
10113 posts
12086 upvotes
Vancouver
Maelstrom wrote: Hi
I was trying to get Dyson Canada to price match another Canadian retailer. In order to price match, I need to place the order first (eg pay the full price and tax on the full price). Then, email their support to get the price adjustment.
However, they are only willing to pay me back the price difference before tax. They claimed that they can't pay back the difference in taxes because that's regulated by government.
That's a BS argument. Their labour costs are regulated by government too, as are the costs of following the fire code, their elevator inspections, and the costs of everything else that government regulates, and is passed on to the consumer. Whether a cost is built into the price or listed separately on the receipt should make no difference.
Deal Expert
Jun 30, 2006
18649 posts
6706 upvotes
Toronto
That is a complete non-sense excuse. They have to give you the difference+tax back. If an item was $500+tax=$565, if you price match for $400+tax=$452. They have to give you back the $113, not only $100. Just cancel and order from the other retailer.
Deal Fanatic
User avatar
Dec 3, 2009
5775 posts
1092 upvotes
Toronto
They are correct with tax amounts, but that's because of the method they choose to do the price match, after the purchase. I don't see how this method helps their books, but indeed it screws the consumer at the end only favours the government.
Remember to be an RFD-er and NOT a degenerate.
Deal Addict
User avatar
Nov 25, 2004
2534 posts
1319 upvotes
London
sounds like a scam. best buy canada does there price matches the same way if u order online but they refund u the difference plus the taxes.
Deal Expert
Jun 30, 2006
18649 posts
6706 upvotes
Toronto
No Frills wrote: They are correct with tax amounts, but that's because of the method they choose to do the price match, after the purchase. I don't see how this method helps their books, but indeed it screws the consumer at the end only favours the government.
Well they need to refund $113 in the example I provided
Deal Addict
User avatar
Oct 13, 2007
3500 posts
2160 upvotes
Edmonton
Maelstrom wrote: Hi
I was trying to get Dyson Canada to price match another Canadian retailer. In order to price match, I need to place the order first (eg pay the full price and tax on the full price). Then, email their support to get the price adjustment.
However, they are only willing to pay me back the price difference before tax. They claimed that they can't pay back the difference in taxes because that's regulated by government.

I think their reason does not make sense, because
1) No one would bother with price match when they can pay less with the retailer with the lower price.
2) Since tax is a percentage of product price and they are matching the price, the tax should be recalculated on the price change.
3) This has never happened to me with other retailers such as Best Buy or Staples.

Just want to ask what other RFDers think and anything I can do with this situation.
Thanks in advance.
Technically, they are not doing a price match, just giving you a discount. If they matched the price, it's obvious that tax would only be calculated on the new price.
Deal Addict
User avatar
Oct 13, 2007
3500 posts
2160 upvotes
Edmonton
You run into the same thing with restaurants and $ off discount coupons. Some take it off the bottom line meaning that you pay the tax on the original amount while others will discount the price before tax is calculated. It's fruitless arguing with them. Obviously, there is only one right method, it's not a pick and choose.
Deal Expert
Feb 7, 2017
15460 posts
12656 upvotes
Eastern Ontario
starchoice wrote: Technically, they are not doing a price match, just giving you a discount. If they matched the price, it's obvious that tax would only be calculated on the new price.
100% This

Most places when you price match it’s a pre tax comparison Retailer A is $ X ... AND Retailer B is $ X + y
So if you price match and Retailer A is $ 100 and Retailer B is $ 150, you are asking for it to be the same as Retailer A = $ 100
The tax is static (not calculated into the comparison) ... cuz if you are comparing two Retailers in the same Province you are going to pay the SAME PERCENTAGE on top of the item sold to you

The retailer you spoke to is right ... the Tax Rate is not his to negotiate it’s a fixed amount by the Govt on whatever you buy
No matter what the Base price is

In Ontario that’s 13% HST

He cannot refund you any HST Amount ... cuz it’s not his to give to you
That money belongs to the Govt

Back to my example
$ 150 + 13% HST = $ 169.50
$ 100 + 13% HST = $ 113.00

The difference is $ 50 + HST = $ 56.50
And THAT IS EXACTLY what you’d be getting

Now here’s another example

Price match + 10% Discount
Retailer A = $ 100, Retailer B = $ 150
Price match = $ 100
+ 10% = $ 10 Discount = $ 90
$ 90 + HST = $ 101.70

Considerably cheaper than Retailer B = $ 150 + HST = $ 169.50

Internal Bookeeping practices will all depend on how they account for the price match
Do they write it off
Or do they just say it’s a discount on their regular price per unit sold

That will ultimately effect how they process the price difference and where the Sales Taxes are calculated
Deal Fanatic
User avatar
Dec 3, 2009
5775 posts
1092 upvotes
Toronto
carmaster wrote: Well they need to refund $113 in the example I provided
I agree that's how it should work if they chose to "discount" this way to PM. That way the consumer is even money, retailer loses more, and government gains.
Remember to be an RFD-er and NOT a degenerate.
Deal Fanatic
User avatar
Dec 3, 2009
5775 posts
1092 upvotes
Toronto
PointsHubby wrote: 100% This

Most places when you price match it’s a pre tax comparison Retailer A is $ X ... AND Retailer B is $ X + y
So if you price match and Retailer A is $ 100 and Retailer B is $ 150, you are asking for it to be the same as Retailer A = $ 100
The tax is static (not calculated into the comparison) ... cuz if you are comparing two Retailers in the same Province you are going to pay the SAME PERCENTAGE on top of the item sold to you

The retailer you spoke to is right ... the Tax Rate is not his to negotiate it’s a fixed amount by the Govt on whatever you buy
No matter what the Base price is

In Ontario that’s 13% HST

He cannot refund you any HST Amount ... cuz it’s not his to give to you
That money belongs to the Govt

Back to my example
$ 150 + 13% HST = $ 169.50
$ 100 + 13% HST = $ 113.00

The difference is $ 50 + HST = $ 56.50
And THAT IS EXACTLY what you’d be getting

Now here’s another example

Price match + 10% Discount
Retailer A = $ 100, Retailer B = $ 150
Price match = $ 100
+ 10% = $ 10 Discount = $ 90
$ 90 + HST = $ 101.70

Considerably cheaper than Retailer B = $ 150 + HST = $ 169.50

Internal Bookeeping practices will all depend on how they account for the price match
Do they write it off
Or do they just say it’s a discount on their regular price per unit sold

That will ultimately effect how they process the price difference and where the Sales Taxes are calculated
I agree on the bookkeeping part and I think whoever keeps the books influenced the PM strategy. It's just easier for them (perhaps stuck in their ways?) to discount it after. Doesnt really help OP but a hypothesis of why.
Remember to be an RFD-er and NOT a degenerate.
Deal Fanatic
User avatar
Dec 3, 2009
5775 posts
1092 upvotes
Toronto
PointsHubby wrote: 100% This

Most places when you price match it’s a pre tax comparison Retailer A is $ X ... AND Retailer B is $ X + y
So if you price match and Retailer A is $ 100 and Retailer B is $ 150, you are asking for it to be the same as Retailer A = $ 100
The tax is static (not calculated into the comparison) ... cuz if you are comparing two Retailers in the same Province you are going to pay the SAME PERCENTAGE on top of the item sold to you

The retailer you spoke to is right ... the Tax Rate is not his to negotiate it’s a fixed amount by the Govt on whatever you buy
No matter what the Base price is

In Ontario that’s 13% HST

He cannot refund you any HST Amount ... cuz it’s not his to give to you
That money belongs to the Govt

Back to my example
$ 150 + 13% HST = $ 169.50
$ 100 + 13% HST = $ 113.00

The difference is $ 50 + HST = $ 56.50
And THAT IS EXACTLY what you’d be getting

Now here’s another example

Price match + 10% Discount
Retailer A = $ 100, Retailer B = $ 150
Price match = $ 100
+ 10% = $ 10 Discount = $ 90
$ 90 + HST = $ 101.70

Considerably cheaper than Retailer B = $ 150 + HST = $ 169.50

Internal Bookeeping practices will all depend on how they account for the price match
Do they write it off
Or do they just say it’s a discount on their regular price per unit sold

That will ultimately effect how they process the price difference and where the Sales Taxes are calculated
I agree on the bookkeeping part and I think whoever keeps the books influenced the PM strategy. It's just easier for them (perhaps stuck in their ways?) to discount it after. Doesnt really help OP but a hypothesis of why.
Remember to be an RFD-er and NOT a degenerate.
[OP]
Deal Addict
User avatar
Apr 23, 2006
1172 posts
180 upvotes
GTA
starchoice wrote: Technically, they are not doing a price match, just giving you a discount. If they matched the price, it's obvious that tax would only be calculated on the new price.
Even if it's a discount on the product, I should not pay the tax before the discount is applied.
PointsHubby wrote: 100% This

Most places when you price match it’s a pre tax comparison Retailer A is $ X ... AND Retailer B is $ X + y
So if you price match and Retailer A is $ 100 and Retailer B is $ 150, you are asking for it to be the same as Retailer A = $ 100
The tax is static (not calculated into the comparison) ... cuz if you are comparing two Retailers in the same Province you are going to pay the SAME PERCENTAGE on top of the item sold to you

The retailer you spoke to is right ... the Tax Rate is not his to negotiate it’s a fixed amount by the Govt on whatever you buy
No matter what the Base price is

In Ontario that’s 13% HST

He cannot refund you any HST Amount ... cuz it’s not his to give to you
That money belongs to the Govt

Back to my example
$ 150 + 13% HST = $ 169.50
$ 100 + 13% HST = $ 113.00

The difference is $ 50 + HST = $ 56.50
And THAT IS EXACTLY what you’d be getting

Now here’s another example

Price match + 10% Discount
Retailer A = $ 100, Retailer B = $ 150
Price match = $ 100
+ 10% = $ 10 Discount = $ 90
$ 90 + HST = $ 101.70

Considerably cheaper than Retailer B = $ 150 + HST = $ 169.50

Internal Bookeeping practices will all depend on how they account for the price match
Do they write it off
Or do they just say it’s a discount on their regular price per unit sold

That will ultimately effect how they process the price difference and where the Sales Taxes are calculated
This might be how they work, but they should not expect us to understand or figure out their internal bookkeeping system. Price match should just be price match or don't call it that.

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