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HST on giftcard at Bridgewater Walmart called 'double-taxing'

HST on giftcard at Bridgewater Walmart called 'double-taxing'

When Susan Mosher's 15-year-old daughter bought a $50 Kobo gift card from Walmart and was charged $7.50 in HST, right away she complained to her mom she was over-charged.

"She was definitely worked up," said Mosher. "It's double-taxing because you pay tax for the gift card, then you purchase the product or the service and you're charged tax again."

HST is supposed to be charged when a product is purchased, whether it's with cash, credit or a gift card.

Mosher took up her daughter's cause and contacted the store in Bridgewater where the e-book gift card was purchased last Sunday.

First she spoke to a customer service representative and then a manager.

"I said you've charged tax on that gift card and you're not supposed to. And she said, 'Oh yes, we are.' She said because it's not a Walmart gift card, it's a third-party gift card, tax has to be charged.'"

Mosher, unsatisfied with that response, asked the manager to contact head office. She says it wasn't long after that the manager got back to her.

'Must have been a glitch'

"It was only about five minutes and she called me back and she said, 'No, you're right. You were charged tax and you're not supposed to be charged tax. Must have been a glitch in the system just as your daughter purchased that gift card."

Mosher, who owns a small business in Robinson's Corner, questions whether this was a one-time glitch or whether other Kobo gift card customers have also been wrongly charged. She says gift cards, like other products, are scanned at the Walmart check-out so cashiers don't ring in merchandise.

"I thought holy cow ... If they don't know that gift cards shouldn't be taxed, how many other items in store are being taxed that shouldn't be taxed? People need to read receipts, for sure."

Mosher has learned how to check Walmart receipts to see if a product has been charged tax. She says there is a "J" beside the price.

Her complaint resulted in a $7.50 HST refund for her daughter — enough to buy an e-book from Kobo.

The experience has been summed up in a buyer-beware tale on Mosher's Facebook page. In three days, the post has been shared more than 1,000 times. She says people have been thanking her for opening their eyes.

Walmart sells numerous third-party gift cards for everything from McDonalds restaurants, to Cineplex movies, to ITunes. CBC News has contacted the company for comment. Walmart says it is looking into the matter.