MANUFACTURE'S Mail-In REBATE COUPONS are everywhere. From grocery to electronic stores- you pay the FULL price up front, and the manufacturer promises to RETURN a portion of that price to you, the consumer, at a later date, providing that you follow ALL their terms.
Sounds good. Buy now, and get some $$ back later to reduce the price paid. Sounds easy! Or, so they would like you to believe!
HOWEVER, ''Mail-in REBATE COUPONS'' are a major source of frustration, and aggravation for consumers! They are, however, a major source of ''revenue'' for the respective companies issuing them. The game is essentially played by being able to advertise a perceived ''lower price''; while knowing full well that only less than 100% of the Mail-In REBATE COUPONS will ever be mailed in for redemption.

As for taxes- the application of any applicable tax to the FULL purchase price is reality. As both the Federal and Provincial governments set forth their own regulations, regarding Mail-In REBATE COUPON redemption, any Federal change in these policies is not likely at any point in the foreseeable future. (Minority Governments do not see this as a priority.) No matter how unfair these regulations may appear at first, a smart consumer can use them to their advantage.

In the case of GST, if the final selling price is not reduced to zero, at the time of purchase, the customer bears the whole tax burden- ON THE FULL AMOUNT. (For coupons, where no purchase is required- FREE MERCHANDISE, the tax is paid by the person/company issuing the coupon.) Though the appearance of paying tax on the gross total may appear unfair; one may consider the rebate to simply be reduced by, including the GST, and act accordingly. i.e. You make a $500 purchase, and pay 6% GST for a total of $530.00 If there is a $100 mail in rebate- this may be viewed as $94.34 + $5.66 GST. HOWEVER, if one were running a business, the INPUT TAX CREDIT, or depreciation, would be based on the FULL original $35 GST paid, not a reduced amount.

One way I have found to save the frustration of mail-in rebates is to simply shop elsewhere. If you are in a major urban centre, most large retailers will price match, each according to their own policy. FIRST- comparison is always a good thing. SECOND- some stores will even add a % as a BONUS, if the competitors price was different. i.e. Offer the lower price, AND 10% of the difference. THIRD, and most importantly- as many of these mail in rebates are specific to a retailer- politely ASK the competitor to give the "Mail-In REBATE" amount as an UP-FRONT discount!

So, Company A has a printer for $500, with a ''Mail-in Rebate'' offer of $100. Company B has the IDENTICAL printer for $525- with a price match guarantee- and BONUS- but no "Mail-In REBATE". Politely ask Company B to offer you the printer for the SAME $500, MINUS the additional $2.50 representing the 10% BONUS of the difference, then DEDUCT the ''Mail-In REBATE'' UP FRONT- to reduce the printer to $397.50 ! At this point COMPANY B, because they have reduced the overall selling price to consumer, are only obliged to charge the GST on the $397.50 amount due.

RESULTS FOR COMPANY A $500 + $30 GST = $530 - $100 ''Mail-In REBATE'' = $430 as a NET result, AFTER YOUR REBATE ARRIVES.
RESULTS FOR COMPANY B $525 - $25 PRICE MATCH - $2.50 PRICE MATCH BONUS - $100 Coupon (in lieu of Mail-In REBATE)= $397.50 + $23.85 GST = $421.35 as a NET result, IMMEDIATELY!
A $8.65 savings- plus a postage stamp saved, and no waiting period.
OF COURSE- Savings will vary depending on purchase amount, and store policy.
Most LARGE retail stores have clearly posted PRICE MATCH POLICIES- if not- simply ASK!

While this is only an example (on a $500 item), having done this several times, I know that it works. Not necessarily at all stores, but it is a perfectly viable way to avoid the frustration of a ''Mail-In REBATE''.

In the end, the options provided by retailers, and manufactures, were never designed to make a consumer's life easier.
However, ''Mail-In REBATES'' are often a VERY REAL benefit to the consumer, and should, if it can't be avoided, taken advantage of. READ AND FOLLOW ALL THE INSTRUCTIONS ON THE COUPON CAREFULLY. SOME WILL REQUIRE ORIGINAL RECEIPTS, OTHERS A COPY. A UPC, OR OTHER PHYSICAL PROOF OF PURCHASE, MAY ALSO BE REQUIRED.

ALWAYS photocopy/scan your original receipt, coupon (BOTH sides) & the UPC if requested. Mail EVERYTHING REQUIRED (with correct postage), in a timely manner. Be sure to follow up if a reasonable period of time has elapsed, and you have not received your rebate. Your photocopy/scan of the original materials is your best defence to see that you get what you are entitled to.

CANADIAN MAIL-IN REBATES & GST TAX IMPLICATIONS ©2006 Sir Mark L. Alter - ALL RIGHTS RESERVED.