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PSA- Gilt and sales tax

post #1 of 8
Thread Starter 
Made two purchases on Gilt in the last few months. Used a coupon on each occasion. Gilt charged sales tax on the pre-discount total on each occasion. On one transaction, the discount dropped the price below $110 and therefore there should have been no sales tax whatsoever. Called customer service and was told that tax is charged pre-discount so I let them know that was completely wrong. Short time later, received an email indicating that tax would be refunded. Can't be the only one this was done to. Check your receipts carefully.
post #2 of 8
Thread Starter 
Same nonsense from Gilt over one year later. Still charging tax on pre-discount total, still charging tax on items under $110. Who know what government agency I can complain to?
post #3 of 8
Someone doesn't learn from past experiences lol
post #4 of 8
Depends on your State, but this is usually an item for the Attorney General (overcharging of consumers).

FWIW in Massachusetts, this tax treatment would be correct (sales tax is due on the market price, not what was actually paid), as long as the original price was >$175. Where it become really apparent is in cell phones - you buy an iPhone for $200, but pay tax on the full freight $600.

But I agree, Gilt is terrible at knowing the ins and outs of local tax laws (I had a similar issue with them a couple of years ago).
post #5 of 8
Thread Starter 
Quote:
Originally Posted by TM79 View Post

Someone doesn't learn from past experiences lol

biggrin.gif I know you're right. Just can't pass up a deal. I should mention that I called before placing the order and was told they couldn't override for the purchase but I would receive a refund after item was shipped. They claimed they noted this in my account.
post #6 of 8
Thread Starter 
Quote:
Originally Posted by tj100 View Post

Depends on your State, but this is usually an item for the Attorney General (overcharging of consumers).

FWIW in Massachusetts, this tax treatment would be correct (sales tax is due on the market price, not what was actually paid), as long as the original price was >$175. Where it become really apparent is in cell phones - you buy an iPhone for $200, but pay tax on the full freight $600.

But I agree, Gilt is terrible at knowing the ins and outs of local tax laws (I had a similar issue with them a couple of years ago).

Interesting. My research in NY indicates if it was a manufacturers coupon for which a retailer is compensated, consumer is charged on pre coupon price. However, if it is retailers discount, retailer is not compensated and tax is on the post discount price. That is awful in Mass. I really want to report Gilt because I wonder how many consumers are not paying attention and what does Gilt do with the extra money?
post #7 of 8
Thread Starter 
Well, in the spirit of giving credit where credit is due, despite my conversation with customer service and the tax charged at the time of the original purchase, the tax has already been removed from the transaction and my card was charged the correct, no tax, amount.
post #8 of 8
Quote:
Originally Posted by tj100 View Post

Depends on your State, but this is usually an item for the Attorney General (overcharging of consumers).

FWIW in Massachusetts, this tax treatment would be correct (sales tax is due on the market price, not what was actually paid), as long as the original price was >$175. Where it become really apparent is in cell phones - you buy an iPhone for $200, but pay tax on the full freight $600.

But I agree, Gilt is terrible at knowing the ins and outs of local tax laws (I had a similar issue with them a couple of years ago).

Does that mean someone at JAB pays sales tax as if their suits were actually $1000+? lol8[1].gif
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