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Aliexpress dodgy GST tax

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wraper:

--- Quote from: tszaboo on March 29, 2024, 09:52:59 am ---
--- Quote from: pcprogrammer on March 29, 2024, 09:46:32 am ---
--- Quote from: tszaboo on March 29, 2024, 08:41:38 am ---In the EU, they will just slap a ~20 EUR import tax + VAT administration fee to your item. And then VAT to the administration fee. So your 1 EUR item would be ~26 once it gets here.

--- End quote ---

Only when the shop you are buying from does not handle the VAT themselves. Then the postperson will knock on your door and collect the VAT + administration fee from you.

Aliexpress handles the VAT for you, so no problem there. But that said, the shipping cost are increasing making it less and less interesting to buy stuff from them.

--- End quote ---
Of course. Only if your seller doesn't handle import tax and VAT. You want DDP incoterms, because somehow doing the same VAT handling is practically free, while in Europe some automated process to send you a link to pay VAT in an email or phone message is 25 EUR.

--- End quote ---
Don't mix IOSS with DDP, very different things. Not to say you assume clearance process and cost is the same across the EU, and it's absolutely not.

pcprogrammer:

--- Quote from: brucehoult on March 29, 2024, 09:47:05 am ---But as you yourself describe later, you pay VAT on the difference between your inputs and your outputs. And get a refund if your outputs are worth less than your costs.

--- End quote ---

True, but that is only when you run a business. If now, I have someone come and do some work for me I have to pay the tax and can't claim it back.

The whole VAT system brings a boatload of work on all ends. You have to fill in the tax forms for it, they have to process them, money has to be transferred, etc.


--- Quote from: brucehoult on March 29, 2024, 09:47:05 am ---And that's pretty stupid and adds huge costs, both to dealing with different rates on different things, but also paying people to decide which rate is for which thing. e.g. basic food such as cookies is 0%, but luxury food such as chocolate is 20%. So which is biscuits coated with a layer of chocolate? Does it depend on the thickness of the layer? etc etc, on a million different goods.

Here in New Zealand everything is 15%, no variations, no exceptions. If poor people can't afford basic food, given them money directly, don't muck about with the tax rate on the food.

--- End quote ---

Yep it sure is in a way. The idea in the NL (EU?) is to make healthy food cheaper, but it fails at that too. Because what is healthy? Potato is a vegetable and somewhat healthy, but now what if it is turned into crisps? Kind of the same as your cookies and chocolate, although I would not consider cookies as basic food.  :palm:

wraper:

--- Quote from: pcprogrammer on March 29, 2024, 10:03:34 am ---
--- Quote from: brucehoult on March 29, 2024, 09:47:05 am ---But as you yourself describe later, you pay VAT on the difference between your inputs and your outputs. And get a refund if your outputs are worth less than your costs.

--- End quote ---

True, but that is only when you run a business. If I have someone come and do some work for me I have to pay the tax and can't claim it back.

--- End quote ---
The thing with VAT is that business claim the VAT paid back in nearly all cases with some rare exceptions. So VAT is actually tax for individual or small non VAT registered business. So only the final (usually individual) buyer actually pays the tax.

wilfred:

--- Quote from: brucehoult on March 29, 2024, 03:31:59 am ---I believe Aliexpress has a warehouse in Australia with, presumably, some of the more popular stuff, as they do also in the USA and EU.

--- End quote ---

I did not know that. But still I have to wonder just what is "more popular stuff". Recently stuff I bought are nickel strip, a spot welding pen  and a folding "leather" case for a Moto G14 which is hardly a popular phone. They all had Chinese writing on the labels.

I'd be surprised if I accidentally drifted into popular items. No idea what they might be.

pcprogrammer:

--- Quote from: wraper on March 29, 2024, 10:09:43 am ---
--- Quote from: pcprogrammer on March 29, 2024, 10:03:34 am ---
--- Quote from: brucehoult on March 29, 2024, 09:47:05 am ---But as you yourself describe later, you pay VAT on the difference between your inputs and your outputs. And get a refund if your outputs are worth less than your costs.

--- End quote ---

True, but that is only when you run a business. If I have someone come and do some work for me I have to pay the tax and can't claim it back.

--- End quote ---
The thing with VAT is that business claim the VAT paid back in nearly all cases with some rare exceptions. So VAT is actually tax for individual or small non VAT registered business. So only the final (usually individual) buyer actually pays the tax.

--- End quote ---

Yes that is what I'm saying. I edited my post to reflect that when I now hire someone, I have to pay the tax. I'm retired and have not had a business since 2012.

Here in France there are also reductions when being a pensioner to stimulate hiring a gardener or so. 20% on top of a workers hourly rate makes it very expensive nowadays.

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