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.

ricrick

usually tax and gratuity are calculated on original price. it has no doubt. but this kind of group buy thing usually mark up the original price

FiChai

No, usually tax is on whatever amount paid on the voucher value; but gratuity is on the original price. Tax system is different to gratuity. Tax is based on the actual amount people paid. For example, the original price of a pack of coke was $6, now with the 50% discount coupon, you only need to pay $3. Do you think tax should be calculated on $6 or $3?
Another example, the idea of gratuity/tips is an expression (in money) of the appreciation for what the server did for you, even you may have a discount on the food you consumed, the work of the server didn't reduced, so the normal calculation of gratuity/tips is still based on the original food price.

快樂牛郎

i've seen both cases but either way the diff is either $1 or $2, who freaking cares?

Nam

It should be tax on original price...I think

Nam

They sell it to you at discount price but it is entered as original price, so the machine will calculate it as orignal price...

I think the coupon to the vendor is a marketing write off, on the book, they still record it as an original price......., so they still have to pay the orignal tax payable to government...

吳孟達

Time to talk to your accountant

快樂牛郎

talk to your accountant for a fxxking $1
they would laugh at what a freaking cheap ass you are

吳孟達

In Canada, $1 is $1 haha..
If not, why people bother to use coupons in grocery shopping...

From what FiChai said, it is not a money matter, it is a matter of if someone is proceeding with wrong calculation for a business.

快樂牛郎

the fact is you are already getting a good deal out of those half price coupons
don't try to squeeze every single dime