Beware of tax matter when buying The RedPocket deals!!! buying, individual, discounted, different

FiChai

There could be different calculation on tax and gratuity on different group deals, but it should be clearly written on the terms and/or fine print on individual deal.

I experienced that tax has being charged on the original price instead of the discounted voucher value. In which I doubt it's a regular and legal practice. I emailed RedPocket for further clarification, and they replied me that their voucher acts as gift cards, so of course tax is calculated based on the original price. IMPOV, "discounted voucher" is different from "gift card".
For example, I use a $5 valued gift card plus $5 cash to buy a $10 item. Tax will be calculated based on $10. If I use a 50% off promotional coupon particularly for that item, then what I need to pay for tax is calculated based on $5 but not $10.

I tried to give out my reason, but they didn't explain anything further and is going to offer me a full refund. To get back my money is one thing, but I'm worrying they will get into much bigger trouble if they wrongfully charge excessive tax on customers.

Look4chrisng

no.1, ok ok

FiChai

回復  FiChai


    then, it doesn't make sense.
Look4chrisng 發表於 2012-1-7 22:35

Did you mean scenario 1 or 2 doesn't make sense?

Look4chrisng

回復 30# FiChai


    then, it doesn't make sense.

FiChai

回復  FiChai


As a business owner, how do you like CRA send you a bill for $10.08 plus interest an ...
Look4chrisng 發表於 2012-1-7 21:39

You didn't answer my question directly, as a customer's role.

Look4chrisng

回復 27# FiChai


As a business owner, how do you like CRA send you a bill for $10.08 plus interest and penalty when you are audited?  GST People are not funny, they are know to put businesses out of business.

Avalon Dairy here in vancouver was sued for back taxes for GST on Bottle deposits.  It nearly put them out of business.

快樂牛郎

So the vendor will be reimbursed for something less the $50 out of the deal, or vendors pay a ...
Look4chrisng 發表於 2012/1/6 21:29

"Plus you don't know how Groupon pays the vendor.  Whatever it is, the value vendor receives has to be higher than the face value of the groupon."

The vendor gets paid 50% of the money you pay to groupon. So a $25 for $50 groupon gives the vendor $12.50.

FiChai

Again:
1. original price was $100, with coupon you only need to pay $10. Total you need to pay should be $10 + $12 (tax on the original $100)= $22
2. original price was $100, with coupon you only need to pay $10. Total you need to pay should be $10 + $1.2 (tax on the coupon price $10) = $11.2

To be honest to yourself, as a customer, which is making more sense to you?

Look4chrisng

Groupon is a charity service?
快樂牛郎 發表於 2011-12-3 07:55

    So the vendor will be reimbursed for something less the $50 out of the deal, or vendors pay an up front fee to Groupon.  Don't know where this charity thing coming from.

blowfish

Groupon is a charity service?

Are u kidding? Is not, is going for IPO pretty soon.