Hidden tax on Amazon.ca Penguin kindle books.

[Kbex]

I just pre-ordered a Nora Roberts book on Amazon.ca. The book was priced at $15.99. With my provincial sales tax of 15%, should have been $18.39. Price showing on my account is $19.19. Checked another book that I had on pre-order for $10.99, same thing. Instead of $12.64, was charged over $13.00.

Called Amazon and was told that Penguin puts their own tax on their ebooks. Has this always been the case for Canadian ebooks? If so, it should be shown in the listed price of the book.

Still don't know how I can be charged more sales tax than listed for my province.

[tlaine]

I checked back and found a Penguin from December and was charged correctly HST @ 13%. The invoice does note, "Sold By: Penguin Group USA" but I purchased through Amazon.ca.

Does your invoice indicate the Penguin Group?

[Kbex]

Yes, shows Penguin USA. Just checked my Amazon.ca account. I found 4 other Penguin books, last one bought in December. I was charged the correct 15% for those. This may be something new.

These last 2 books are pre-order. My invoice doesn't show the tax charged, just the list price and the final price. I asked the CSR if there could be a mistake that would be fixed when the sale was final, but she confirmed that the price was correct and said that the extra charge was tax.

[tlaine]

Wouldn't that be a kick in the pants for us; a week after signing agreements with the Competition Bureau the publishers are raising prices?

Hopefully it's an error and when you're actually charged and invoiced showing tax, it will be correct.

[Shopaholic]

That makes no sense. I suspect that the Amazon rep you spoke to has zero clue about Canadian taxes and isn't even in Canada. You cannot be charged tax greater than allowed by the provincial and federal governments. Especially a random tax by some company. That's nonsense!

[Katsunami]

Originally Posted by Kbex

Called Amazon and was told that Penguin puts their own tax on their ebooks.

I don't know anything about American law, but if this had happened in the Netherlands, I wouldn't have believed it. Imagine that we would state prices without VAT, because some regions charge 15% and others charge 20%.

E-Book price without VAT: €10
Publisher: Spectrum

I live in a region that charges 20%. Then I'd expect to pay €12. If the price would be €12,50, because "Spectrum charges their own 5% tax", I'd call off the purchase. That sounds ridiculous. It can't be the case that companies are charging their own taxes at will.

[tlaine]

The word "tax" was used, whereas "surcharge" is much more likely.

[Kbex]

Originally Posted by tlaine

The word "tax" was used, whereas "surcharge" is much more likely.

Yes, it was the CSR that said it was a tax, but that does seem more likely. Still not happy.

As I said, it was a pre-order. Could still be a mistake.

[Kbex]

Called Amazon customer service back today. At first the CSR said that Penguin USA had to charge their tax and mine. But after checking my former purchases that had the correct tax, she thinks that there may be an error.

She is going to follow up on the matter when the book is released in March, but said that there is a good chance that the correct taxes will be added when my card is charged.

[naysmitj]

I just ordered a Cussler book due March 4th and had the same issue as you, $15.99 turned into $19.19. I called customer service who advised it was tax. I told her that living in Ontario there is no way to get 20% tax and on books there is not a full HST charge. She has sent my question to the Amazon tax department and advises that I should get an explanation in writing within 48 hours. I will share what I receive with the board.

[Fluribus]

Used to be that the major publishers sold the books to Amazon. Then Amazon sold the books to you. That is no longer the way they do it. They sell the books through Amazon. Maybe some agency has told Penguin that, with this more convoluted system, they are required to collect an additional tax above the tax collected by Amazon.

[KingOfMyWorld]

Sadly a look at the Amazon.ca Tax Information page lists this tidbit:

Tax on Items Purchased from Select Amazon Sellers

Kindle books, subscriptions and active content titles sold by various publishers are subject to tax based on the publisher's tax reporting obligations and the taxability of digital books in those provinces. As a result, tax for Kindle books sold by the publisher may differ from the tax to which you've been accustomed for Kindle products.

Source: Amazon.ca


So unfortunately, this could become more of a problem going forward.

[Shopaholic]

Originally Posted by KingOfMyWorld

Sadly a look at the Amazon.ca Tax Information page lists this tidbit:



Source: Amazon.ca


So unfortunately, this could become more of a problem going forward.

That's all fine and dandy but that's the regular tax applicable in the specific province. I thought the OP was referring to a tax over and above those numbers. No?

[Shopaholic]

Originally Posted by naysmitj

I just ordered a Cussler book due March 4th and had the same issue as you, $15.99 turned into $19.19. I called customer service who advised it was tax. I told her that living in Ontario there is no way to get 20% tax and on books there is not a full HST charge. She has sent my question to the Amazon tax department and advises that I should get an explanation in writing within 48 hours. I will share what I receive with the board.

Once Ontario began using the HST (harmonized tax blending of provincial and federal) then yes you do pay the full 13% on books. That was what a lot of the uproar about HST was about. Things that were previously not subject to the provincial tax of 8% would now have a cost increase of that 8% because of the HST.

That included things like books and insurance for example. It shouldn't be 20% but it would be the 13%. They're doing something wrong here. When I buy ebooks at Kobo I pay the 13%. When I buy a hard copy book I pay 13%. I'm in Ontario too. Amazon has mucked something up and they haven't figured it out yet.

[naysmitj]

Got my order filled for my Kindle book and the final tax was 13%, so the incorrect tax was only showing up on my order prior to the release date of the book I purchased.
Cheers