I came across this post and thought that I’d add that Fido Dollars are applied only once & after taxes are applied on the price of the device being purchase.
As JasonB mentioned, the phone is billed with the taxes on top then Fido dollars are deducted at the end.
Fido Rewards are applied after the sale of the handset.
You have $100 in Fido Rewards.
IPHONE4(16GB) - $649 + ( Lets use QC tax ) GST: $32.45 + QST: $57.92 = $739.27
Now we remove the agreement credit: $739.27 - $490 = $249.27
Now we take the Fido rewards and remove them: $249.27 - $100
Phone is $149.27
JasonB's calculation is incorrect. This is just a clarification on the calculation:
I got the LG G3 last week. It was listed at $50. So I was charged $57.49 after taxes in Quebec. Therefore $57.49 Fido Dollars were deducted from my Fido Dollars balance.
Keep in mind the subsidy is always deducted before taxes. This way if you break your agreement you will be left to pay the remaining subsidy based on months remaining in agreement and taxes will be charged on that amount. All in all you are only paying taxes once on a certain amount. If you don't need to break the agreement then you will also saved on the taxes you would have had to pay on the susidized amount. By subsidizing my LG G3 I saved over $80 in taxes
I bought a travel package, and my monthly statement showed a debit and then a credit for the travel pack. That was good, but the taxes on the travel pack were not paid back. Why is this? Should it not be paid back too?