General > General Technical Chat
Aliexpress dodgy GST tax
tszaboo:
--- Quote from: wraper on March 29, 2024, 01:41:51 pm ---
--- 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.
--- End quote ---
But it wouldn't be the same. You buy two things for 1 EUR each, put it together, sell it for 3 EUR, pay after 1 EUR as tax. Your government gets tax after 1 EUR "Value added". Someone else stocks it, puts it in a store sells it for 5 EUR, they pay for 2 EUR value added. It's the same for the end customer, but it's very different for countries that don't make end product. Besides, what is an end product anyway? A fridge might be an end product for a consumer, or a tool without VAT for a bakery.
wraper:
--- Quote from: tszaboo on March 29, 2024, 01:54:20 pm ---
--- Quote from: wraper on March 29, 2024, 01:41:51 pm ---
--- 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.
--- End quote ---
But it wouldn't be the same. You buy two things for 1 EUR each, put it together, sell it for 3 EUR, pay after 1 EUR as tax. Your government gets tax after 1 EUR "Value added". Someone else stocks it, puts it in a store sells it for 5 EUR, they pay for 2 EUR value added. It's the same for the end customer, but it's very different for countries that don't make end product. Besides, what is an end product anyway? A fridge might be an end product for a consumer, or a tool without VAT for a bakery.
--- End quote ---
Buy two things, get credit on VAT paid for those, then sell with VAT on a full value. It's the same as if you did not pay VAT to your suppliers to begin with.
It's like arguing what's more expensive, $120 thing with $20 rebate or $100 thing with no rebate. It's only consumer that does not get the rebate at the end of the chain.
pcprogrammer:
--- Quote from: Siwastaja on March 29, 2024, 01:26:11 pm ---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!
--- End quote ---
I don't struggle with the concept, I just hate having to pay it.
Did my books myself and in the beginning the VAT was only once every quarter. At some point my income and work load grew and the tax office decided I had to do the VAT declaration every month. Sure earned a lot of money, but it also increased the work load, both client and tax work. Reaped the benefits of it too though. Could not have afforded the very expensive oscilloscope I have otherwise. No VAT and tax deductions based on investments. >:D
Also VAT is kind of double taxing but for sure a big income for the government. You hire someone, pay the VAT and the worker. The worker then pays income tax over what you payed him, and VAT for all his non business purchases, etc.
The whole thought behind the VAT on foreign webshops was to equalize the playing field for local sellers, but the only one gaining from it are the governments. They take yet again a piece of the pie.
The boatload of work has more to do with what brucehoult mentioned about the different VAT rates that we have now. :-DD
c64:
--- Quote from: retiredfeline on March 29, 2024, 05:59:55 am ---Where do you see that you are charged at least $1 GST? I've always paid 10% no matter what the total (price + shipping). AliExpress is registered in Australia and is obliged to collect GST.
--- End quote ---
Pretty much all the promotional items sold for under couple of bucks (including shipping). Look for example at this store, they have few items under $1 for first time buyer
https://www.aliexpress.com/store/1102126606
I'm pretty sure, if I try this kind of shit (charging more than 10% GST) as a business here, I will get a visit from ATO (ato.gov.au) pretty soon
retiredfeline:
--- Quote from: c64 on March 30, 2024, 07:31:04 am ---Pretty much all the promotional items sold for under couple of bucks (including shipping). Look for example at this store, they have few items under $1 for first time buyer
https://www.aliexpress.com/store/1102126606
--- End quote ---
I can't replicate your problem but I'm not a first time buyer so those < $1 don't appear for me. But I did find a cheap item < $10 (including shipping) and the GST was correctly calculated. You'll need to show us a summary panel to prove your experience.
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version