How much tax should you pay on a daily deal?
Published Friday, April 20, 2012 11:32AM PDT
There is no hard and fast rule when it comes to how much tax you pay on vouchers purchased from daily deal websites, Steele on Your Side has learned.
Viewer Pandora wrote in after purchasing a 50 per cent off Dealfind coupon for high tea at the Fairmont Hotel Vancouver. She wondered if you have to pay HST on the original amount -- $76 -- or the lower cost of $38
The Dealfind page stated that: "Taxes of 12% and gratuities of 15% must be paid to the Fairmont Hotel Vancouver on the price of $76."
But like many daily deals, the Fairmont only charges the tax on the discounted amount. However, the gratuity for service is based on the original, higher price because that's what they consider the value of what you're receiving.
Hotel spokesperson Ronan Barrett said the deal "does lend itself to being a little confusing."
"The Fairmont Hotel Vancouver has always and will continue to operate with full transparency when dealing with online promotions and we ask that our guests continue to have confidence in the product and service we have built our reputation on," Barrett told Steele on Your Side in an email.
Not all businesses that work with daily deal sites charge tax at all, so it's best to check with the individual company before you purchase the coupon.
Most daily deal sites also offer message boards where you can post questions about the deal, to clear up any confusion.
Every Friday Lynda Steele dips into the viewer mailbag and answers a handful of viewer questions. Watch tonight for more on saving money on daily deals, and how you can properly dispose of prescription drugs…