Taxes

Q: What are the tax rules?

A: Retailers are to charge consumers provincial tax (as applicable) and GST on all prepaid cards except for Payphone Cards.

GST rules for Telus Payphone Cards are an exception as they bear the notation “GST included”. GST rules for Payphone Cards are as follows:

• Go Prepaid will charge GST to retailers, based on the discounted sale price, and remit this GST to Revenue Canada.
• Retailers will claim input tax credits for GST paid to Go Prepaid. However, retailers will sell the Payphone Cards to consumers at their face value, on a GST-included basis. The cards will bear the notation “GST included” or tax included. Retailers should NOT remit GST to Revenue Canada.
• Telus will calculate the tax at the time of use of the Payphone Card and remit this to Revenue Canada

Please note that the above rules pertain to Payphone Cards only. For all other prepaid products the retailer should charge GST to consumers.