I just got my replacement Hero 5 Black. I was charged $59 replacement fee plus $20.90 tax for a total of $79.90
The $20.90 tax is 9,5% of the WARRANTY REPLACEMENT price of $219.99, not the $59,00 replacement fee.
This does not seem right. Any sales tax should be applied to the cost of goods net of any discount.
The GoPro invoice lists the value of the replacement camera and then applies a discount equal to that value so the net cost of the camera is zero (See below) . The only cost to me is the $59 replacement fee. So why is the tax applied to the pre-discount price of the camera ($219.99) when the net cost of the camera (after discount) is $0.00?
These are the line items from the GoPro invoice:
CHDNH-W15 Item Name HERO5: BLACK, WARRANTY REPLACEMENT 219.99
PEXDISC Plus Exchange Camera Discount -219.99 <---this reduces the cost of the camera to $0
GEXHX-501 GoPro Plus Hero 5 Black Exchange Fee 59.00
Subtotal 59.00
Shipping Cost (UPS 2nd Day Air) 0.00
Total Tax (Sales Tax 9.5%) 20.90 <---this 9.5% of $219.99
Total $79.90
The net cost of the camera is $0. Why am I charged sales tax on the undiscounted price of $219.99?
