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Aliexpress dodgy GST tax

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jonpaul:
 GST/VATsales tax is   very unfailr an perhaps illegal scheme for governments to steal.

All tax is thieft. Its OUR money not the Governmants!

See Murray Rothbart, Lugwig VonMises, the Federalist Papers, Claudio Grass, Ron Paul

This happens by your  electing socialist/commies to your governmants.

Jon

tszaboo:

--- Quote from: wraper on March 29, 2024, 09:56:37 am ---
--- 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.

--- End quote ---

"The most important consideration for DDP terms is that the seller is responsible for clearing the goods through customs in the buyer's country, including both paying the duties and taxes, and obtaining the necessary authorizations and registrations from the authorities in that country."
There is a slight difference in what IOSS is, it's a procedure for the seller to pay the import duty and VAT. DDP is a delivery term that might include IOSS and whatever else to get the product to your door without extra additional cost later. IOSS is not an incoterm.
DDP is an agreement between the seller and buyer on who does what, IOSS is one of the procedure the seller can do.

wraper:

--- Quote from: tszaboo on March 29, 2024, 12:52:42 pm ---"The most important consideration for DDP terms is that the seller is responsible for clearing the goods through customs in the buyer's country, including both paying the duties and taxes, and obtaining the necessary authorizations and registrations from the authorities in that country."

--- End quote ---
DDP is seller paying for particular delivery service that involves customs clearance of the goods. IOSS (EU only but there are similar things in some other countries) means platform or seller collecting VAT for low value items sold to individuals only and paying total collected tax through IOSS once in taxation period. No clearance service involved. Shipped through usual service. DDP from Mouser or Digikey is even more complicated, they basically sell items to their European subsidiaries which then resell them to you. So you don't even get an invoice from US company.

Siwastaja:

--- Quote from: pcprogrammer on March 29, 2024, 10:03:34 am ---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.

--- End quote ---

VAT is one of the simplest and most obvious forms of taxation, and it's pretty similar all over the world (maybe with small implementation detail differences), so I'm quite surprised to see you struggle with the concept!

Of course businesses need to "fill in forms". Bookkeeping is basic requirement for running any kind of business, everywhere, and so is paying taxes. Even I as a small business, and someone who hates paperwork, am totally fine with VAT; VAT is simple. When you sell, you add VAT to the price. Then you deduct the VAT of whatever you had to buy to be able to deliver the product. End result is, you (or more appropriately, your customer) is paying tax for the value increase only. Pretty simple.

wraper:

--- Quote from: Siwastaja on March 29, 2024, 01:26:11 pm ---When you sell, you add VAT to the price. Then you deduct the VAT of whatever you had to buy to be able to deliver the product. End result is, you (or more appropriately, your customer) is paying tax for the value increase only. Pretty simple.

--- End quote ---
VAT is just a sales tax with a lot of back and forth happening in intermediate stages. You as individual just pay tax on full value that sort of compounds in intermediate stages, but actually does not really. Naming it VAT makes no sense for final customer as it's anything but, its name only makes sense in the context of back and forth going in between of businesses and TAX agency. It could be just removed in all intermediate stages (it actually is in cross country sales within EU between VAT registered entities) with the same end result. It's just stupid when I have to pay VAT when clearing customs for shipments for my business to just get it reimbursed by tax agency a month later since I almost never sell within Latvia and to individuals.

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