Hi everyone. I have a question to ask due to confusion on figuring out something. I have ordred two Samsung Galaxy S24 FE back in Dec 30, 2024 when there was a deal on fido for $5 each/month per device to be added to my both plans on my Fido account. I got them yesterday, March 6, 2025 due to miscommuncation and disconecction between Fido store and Fido, the magnificent itself.
My question is that I received my Fido agreement few hour later, but I cannot figure this out. Attached here is the breif snapshot of account changes. I know I should pay roughly $48 per plan(one with discount and one without), but nowhere I can find it says I will pay $5 per device per month moving forward. Called the Customer Care, and they kept insisitng that it is indeed $5 per month per device and the reason I cannot see was because Fido uses that high end literacy to implement discount and I should imply that indirectly. I don't want to just listen and acknowlege that everything is OK considering I have lost my trust due to previous experience on miscommunication and disconnection between Fido empire different deparmtnets. Since I have 15 days to either keep these devices or request a return, I thought it will be better to have your opinions on. Thank you.
Hello again,
Thank you for sharing your work this time. Unfortunately, that calculation is not correct.
@Steve2020 wrote:
....My mobile plan is $48.5 before tax with $6+$5 monthly discount that brings to total $37.5 before tax....
As mentioned in my previous reply:
@Cawtau wrote:
...There could be slight differences in calculations depending on whether the Mobile plan discount is applied before rather than after taxes and whether the amount shown already reflects that discount.
I agree that the Mobile Plan discount could be applied before taxes, if it is not already reflected in the $48.50 amount stated. That would be because the discount reduces the cost of services. If the stated fee for Mobile services already reflects the Mobile Plan discount, you would not get to deduct another $6. However, I believe the Automatic Payment discount would be applied after taxes. That's because that discount has nothing to do with the actual cost of services. It is an overall discount for using a preferred method of payment.
The government is going to want its full share of taxes. Any discounts which affect the cost of goods or services will be applied before taxes, while any discounts or credits which don't directly affect the cost of goods or services would be applied after taxes. It would be a similar situation with a discount versus store credit at your local store. A discount on the item would reduce the actual cost of the item so it would be applied before taxes. However, store credit has nothing to do with the actual cost of the goods so should not reduce its cost. As such, store credits are applied after taxes.
@Steve2020 wrote:
...My device initial fee is $46.32 but there is $41.32 device discount fee that brings it down to $5 before tax...
There's a reason the taxes were already calculated for the Payment Program amount. The taxes are charged on the full price of the device (see here). As mentioned above,
@Cawtau wrote:
...Fido does not actually discount the cost of the device. Rather, they provide a monthly credit to off-set the device cost...
As stated above, the government is going to want its full share of taxes. If the cost of the device is not actually reduced, you are required to pay the taxes on the full device cost. The Payment Program Promotion is a credit (read store credit). Since that credit does not actually reduce the cost of the device it would be applied after taxes.
There could be slight differences in calculations with relation to the Automatic Payment discount and Mobile plan discount. However, the Payment Program Promotion credit is applied after taxes.
Hope this helps 😀
Cheers
Thanks for your dedicated response clarifying things around. I am not sure if I understood it correctly. Here, I have attached a snapshot of my order confirmation on my Fido account for this mobile plan that I placed for Samsung S24 FE back in late Dec 2024 on a deal. As you may see, the mobile plan itself was written as $34, but the actual was $45. Why it was shown as $34? Because the $5+$6 discounts on mobile plan were applied right before this given snapshot. You may ask but it is shown as $48 mobile plan/monthly now. Yes, it is because within the device pickup time and the placed order was roughly 2.5 month difference and Fido added $3.5 to my post paid mobile plan to be updating as $48.5/month. As you may see here in the given snapshot, I would pay $44.07+($3.5x1.13) which gives the final $48.025 per month on my post paid Fido mobile plan on this line. Your given $54.84 calculation seems not right. Any thoughts? Thank you.
Hello again,
Thank you for the additional information. Personally, I would say that I don’t think those calculations are correct. I don’t think an individual purchase of services can be negative and have negative taxes. That would imply that both the provider and the government pays you money for your purchase. It’s not a refund; it’s not an overpayment…
@Steve2020 wrote:
....As you may see, the mobile plan itself was written as $34, but the actual was $45. Why it was shown as $34? Because the $5+$6 discounts on mobile plan were applied right before this given snapshot....
Fair enough. As mentioned previously, there could be slight differences in calculations depending on whether those are applied before or after taxes. I also asked if there was additional information from your statement as I could not assume either case, given what you provided. I calculated the way I did with those items after taxes with the disclaimer because it was simpler than going through each case separately.
Going back to the values from your other screen capture, these would be my calculations:
Monthly Mobile Services cost = ($48.50 - $5 - $6) x 1.13
= $37.5 x 1.13
= $42.38
Total monthly cost = Monthly Mobile Services Cost + Monthly Payment Program - Payment Program Promotion
= $42.38 + $52.35 - $41.32
= $53.41
That said, I also mentioned that my calculations might not be the actual calculations Fido uses. Ultimately, the amount owing would be what Fido calculates for you. If Fido chooses to apply the Payment Program Promotion credit before taxes, that’s up to them. Personally, I don’t think doing so makes any sense. They would be charging full taxes on the device, but not really if they are charging less in taxes on services (including negative taxes). However, if that is how they choose to calculate it, that is their decision. Fido should provide you with the amount you need to pay on your monthly bill. If I am mistaken about my calculations, then I apologise for adding to the confusion.
Cheers
So in accordance with this given snapshot, I will pay only $48.04 per month for both my device and mobile plan starting next bill? This is what Fido agent on the phone told me today. Correct me if I am wrong. Thank you.
Hello again,
Ever since they replaced the old subsidised plans with their Payment Program, the cost of financing devices have been separated from the cost of services. The cost breakdown can be shown in the Summary of Fees in the screen capture you provided. So the total monthly cost would be the cost of devices (Monthly Fees for Payment Program) plus the cost of services (Monthly Fees for Mobile Services). That total cost is offset by the Promotions and Discounts outlined.
If you were not aware, you should note the forums are community-driven and not intended as a venue for customer services. We do not have access to customers' accounts nor would we know what was previously discussed. However, you would need to pay both the monthly service charges as well as the monthly financing charge.
**edit** Apologies, I just re-read your post. That amount you posted, is that including taxes? Do you have the rest of the statement? They should provide you with the total amount owing**
Hope this helps 😀
Cheers
Hello again,
Sorry, but that snapshot does not show it all. While the taxes may have been included with the fees for Payment Program, they are not included for the Mobile Services.
Unfortunately, I'm not sure how you came to your $48.04 per month. I have not been able to come up with any calculation which amounts to that amount. Intuitively, I'm not sure it makes sense either. That amount is less than the monthly service fees, let alone the additional $5 for financing a device.
By my calculations I think the amount would be closer to $54.84.
From the taxes for Payment Program, it appears as though HST is 13%.
Monthly Mobile Services cost = $48.50 x 1.13 = $54.81 including taxes
Total montly cost = Montly Mobile Services Cost + Monthly Payment Program - Automatic Payment distcount - Mobile plan discount - Payment Program Promotion
= $54.81 + $52.35 - $5 - $6 - $41.32
= $54.84
There could be slight differences in calculations depending on whether the Mobile plan discount is applied before rather than after taxes and whether the amount shown already reflects that discount.
As mentioned, forums are community-driven and not intended as a venue for customer services. My calculations may not be the actual calculations Fido uses. The rest of the statement should provide the total amount owing.
**edit** I think I might have figured out how you might have calculated your amount.
Mobile Services Cost = ($48.50 - $5 - $6 - $41.32) x 1.13
= -$3.82 x 1.13
= -$4.31
HOWEVER, you can't charge taxes on a negative amount. So that calculation is not correct.**
Hope this helps 😀
Cheers
Hello Steve2020,
You should note that with many of the device offers, Fido does not actually discount the cost of the device. Rather, they provide a monthly credit to off-set the device cost. That monthly credit is applied to the bill and not device financing cost. The device cost shown with your offer was calcuated after bill credit.
Unfortunately, I do not have access to the details of the offer you received. However, this is the current offer for that device:
~taken from Fido.ca (price on March 7, 2025).
While the offer is not the same as the one you received, the screen capture does show the monthly payment cost for the device.
In your case, the original monthly financing fee of $46.32 and bill credit of $41.32 (Payment Program Promotion from your screen capture) calculates to $5 per month.
It would be important to note that the monthy financing fee does not actually change, though. If you choose to end the contract early, you would still be required to pay the total remaining balance of the device. That is, the remaining balance would be $46.32 x remaining number of months, not $5 x remaining months as the remaining monthly credits would no longer apply.
Hope this helps 😀
Cheers
