Quote:
Originally Posted by 1234
The problem is I'm still paying tax on the part I'm not supposed to have really "spent", and will have to pay again when I do spend it.
I paid $19.99 + 13%($2.60) tax.
Amazon has the book for $9.99, so they gave me back the difference plus 10% of Amazon's price, for a total of $11 refunded.
This means I only really paid Kobo $9 for the book.
I should only have had to pay 13% of $9($1.17).
When I use the $11 store credit I'll have to pay tax again.
The extra tax ($1.43) cost me more than the incentive ($1.00 off) saved me.
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I think it is done differently in different countries, so you probably need to say which country you are in and see if someone from that country knows how it works.
My guess is that in most countries where prices are tax-inclusive, the store credit should also be tax-inclusive, and is applied to the tax-inclusive price of your next purchase. But in countries where the price doesn't include tax (which seems to apply to your case) then the store credit would also be tax-exclusive, and so it would be applied to the tax-exclusive price of your next purchase and then tax added to the balance. If that is the case then you won't be paying tax twice, and your refund has been calculated correctly.