HST charge after upgrade

[Krystalk]

Last month I upgraded my phone though 2 yr financing with Bell. I was very careful about checking what costs would be applied to the first bill after the upgrade so I knew what to expect. I was a little miffed when there was a $229 HST charge on my $125 phone bill. 
I called and was told this is the tax for the phone. I don’t mind having to pay this but I am confused as to a)why it was never mentioned and b) how they actually calculate the HST. 
I did a down payment to lower the monthly price and was charged HST on this down payment. The original cost of the device was $1644 and with the amount I put down it lowered it to $1245. It seems they are charging me the HST on the device full price, not minus the down payment. The financed amount on my contract is for $1245 not the $1644 so I’m quite confused!! 
Customer support has not been helpful on explaining or giving me a proper breakdown on how the calculated the amount. Any help would be appreciated. Thank you

[dks · Accepted solution]

Thank you for your question. In general, Bell is required to remit the HST on the full price of the phone when it is sold to you, not when it is paid off, nor each month until it is paid for. You will see on your next bill the monthly payment for your amount financed and your plan cost plus the HST on your plan. Unfortunately the Community Forum can not discuss your specific bill as we have no access to any user or account information. For further assistance, please call 1 800 667-0123 or dial *611 from any Bell mobile device. 

[WelshTerrier · Accepted solution]

 HST is calculated & charged on the full retail price of the mobile phone you purchased. You chose to pay down a portion & finance the remainder. That allowed you to reduce your monthly finance payments. It did not reduce the purchase price of the phone. 13.0% HST is charged on the full price. This includes your deposit. Your deposit is subtracted leaving you with the outstanding balance owing.

Take care.

[TeeTee]

After going to a Bell store (they didn't know why) and calling Bell twice for clarification as to why there is a huge HST charge for our 2 new devices, I think I have some clarity. Apparently Bell has to charge HST on the cost of the new devices, even though we chose to "rent" them and return in 24 months. This should be clarified when getting new devices.

My question is, if we are charged upfront for HST then why is our monthly rental amount for the devices also being charged? I chose a phone that is $5/mth, somehow it comes to $6.80/mth. Bell has the MOST confusing billing on the planet. It's needs to be redone.

[WelshTerrier]

Good Day & Welcome to the Bell Community Forum.

The Bell Community is a place for you to ask questions, find answers and share your thoughts. It is a peer-to-peer site. We do not have access to your account & billing records. We will our best to assist in answering your question with the best available information that we have at our disposal.

Bell is required to remit the HST on the full price of the phone when it is sold. Your monthly payment includes the amount you financed and your plan cost plus the HST on your plan. HST is calculated & charged on the full retail price of the mobile phone at the time of purchase. If you chose to pay down a portion & finance the remainder, taxes on the financed device amount are payable with your monthly device payments.13.0% HST is charged on the full price  of the device. Your deposit is subtracted  from the purchase price + the taxes leaving you with the outstanding balance owing.

Your monthly finance payments & mobility plan are also taxable.

For further assistance, please call 1 800 667-0123 or dial *611 from any Bell mobile device.

Take care.

[Joe_Mancini]

I'm with you, this was never mentioned to me either, so i was quite surprised to have such a large HST charge. Be that as it may, with my upgrade, i have a walk away option after turning in my phone or buying it out for $600, but Bell has charged me HST on the full amount, which is not really fair. I will need to double check when i return my phone to make sure i am refunded the amount of the final buyout.

[WelshTerrier]

Good Day.

Thank you for posting your concern. There is little we can do to assist you in solving an HST issue on this community website. HST is chargeable on any new phone, whether it is purchased from Bell or from any other carrier & supplier

Bell must remit the HST on the full price of the phone when it is sold. Your monthly payment includes the amount you financed and your plan cost plus the HST on your plan. HST is calculated & charged on the full retail price of the mobile phone at the time of purchase. If you chose to pay down a portion & finance the remainder, taxes on the financed device amount are payable with your monthly device payments.13.0% HST is charged on the full price of the device. Your deposit is subtracted from the purchase price + the taxes leaving you with the outstanding balance owing. Your monthly finance payments & mobility plan are also taxable.

None of us likes to pay more than our fair share of tax. It is what it is. There is little you & I can do about it.

For further assistance, please call 1 800 667-0123 or dial *611 from any Bell mobile device.

Take care.

[RPillai]

I am checking my device payment breakdown and it already includes a tax of 216$ which is included in the financed amount. Why am I then being charged an hst again for 258$

[dks]

Your charge was the HST on the original price of your device. The remainder is on your financed amount plus your plan. See the posts below for an explanation. 

[WelshTerrier]

Good Day & Welcome to the Bell Community Forum.

HST is chargeable on any new phone, whether it is purchased from Bell or from any other carrier & supplier.

Bell must remit the HST on the full price of the phone when it is sold. Your monthly payment includes the amount you financed and your plan cost plus the HST on your plan. HST is calculated & charged on the full retail price of the mobile phone at the time of purchase. If you chose to pay down a portion & finance the remainder, taxes on the financed device amount are payable with your monthly device payments.13.0% HST is charged on the full price of the device. Your deposit is subtracted from the purchase price + the taxes leaving you with the outstanding balance owing. Your monthly finance payments & mobility plan are also taxable.

For further clarification & assistance, please call 1 800 667-0123 or dial *611 from any Bell mobile device.

Take care.