Author Topic: Aliexpress dodgy GST tax  (Read 41462 times)

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Offline c64Topic starter

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Re: Aliexpress dodgy GST tax
« Reply #50 on: April 01, 2024, 09:09:57 am »
I have purchases in my account, so it's not my first. But I've never used "shipped by aliexpress" before, I guess this is the reason I see these offers.
 

Offline c64Topic starter

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Re: Aliexpress dodgy GST tax
« Reply #51 on: April 01, 2024, 09:17:42 am »
It is possible that with the compilcations of being first time buyer and free shipping, there is a bug in their calculations. Have you contacted AliExpress?
Nah, too much work for couple of bucks. Even if they bother to reply.

Some items have incorrect amount of GST to equal exactly the price of the standard shipping. For example, item $0.76, shipping normally $3, shipping discount $3. Total price $0.76 but GST is $0.37 (as if it is applied to the full $3.76 price).

But some have completely random number, like in my screenshot before
 

Offline retiredfeline

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Re: Aliexpress dodgy GST tax
« Reply #52 on: April 01, 2024, 09:23:06 am »
It could be that evil accountants have worked out a legal way to charge GST on a higher price. What they do is award you points on the spot equal to the discount and the postage. Just a theory. Good thing for the world I didn't go into accountancy instead taking up some other evil profession. :-DD
« Last Edit: April 01, 2024, 09:24:38 am by retiredfeline »
 

Offline Kim Christensen

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Re: Aliexpress dodgy GST tax
« Reply #53 on: April 01, 2024, 03:39:58 pm »
Some items have incorrect amount of GST to equal exactly the price of the standard shipping. For example, item $0.76, shipping normally $3, shipping discount $3. Total price $0.76 but GST is $0.37 (as if it is applied to the full $3.76 price).

In Canada, that's how they do the GST. They calculate it before discounts are applied.
My ISP gives me several discounts, but the taxes are on the subtotal before discounts.
 

Offline thm_w

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Re: Aliexpress dodgy GST tax
« Reply #54 on: April 01, 2024, 09:41:29 pm »
But some have completely random number, like in my screenshot before

You haven't included the original price of the item, so there is no way to know if it is "totally random" which is unlikely, or if its simply based off the cost of the item.

edit: yes Australia rules seem like they are on the post-discounted price, but as above many other countries might use the pre-discounted price to calculate the tax. If this bug only applies to first time buyer, I wouldn't care.
https://www.reddit.com/r/Aliexpress/comments/126onop/aliexpress_has_overcharged_me_tax_on_virtually/

I only see one recent order where I was charged tax, and it was slightly below the official tax rate (11.4 vs 12%), and was calculated post-discount.
« Last Edit: April 01, 2024, 09:51:10 pm by thm_w »
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Offline thm_w

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Re: Aliexpress dodgy GST tax
« Reply #55 on: April 01, 2024, 09:54:35 pm »
Some items have incorrect amount of GST to equal exactly the price of the standard shipping. For example, item $0.76, shipping normally $3, shipping discount $3. Total price $0.76 but GST is $0.37 (as if it is applied to the full $3.76 price).

In Canada, that's how they do the GST. They calculate it before discounts are applied.
My ISP gives me several discounts, but the taxes are on the subtotal before discounts.

Thats probably just Telus/Shaw reaming you, they are able to not charge tax post-discount if they decided to.
I'm sure its done on purpose there, unlike Ali, where its just as likely to be a programming bug.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-special-cases.html
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Online DaneLaw

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Re: Aliexpress dodgy GST tax
« Reply #56 on: April 01, 2024, 10:18:01 pm »
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.

Shipping charges are a different matter, it's up to the seller and some sellers tempt buyers with cheap prices but the shipping is expensive. I look for companies that will sell multiples units or items with minimal increase in shipping cost.

PCB orders fly under the GST radar because the firms are not registered in Australia and the GST is too small to collect.
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.
Exactly, and that administration VAT fee would make low-value purchases extremely difficult.
So its a big plus that sources like Aliexpress, Banggood, and also eBay handle the VAT on the fly when you purchase items outside EU that are below a certain value, so you're not getting choked by that ludicrously high VAT administration fee, that here in Denmark is 160DKK (22€) +25%VAT of the shipping cost. and item value.

Items from Aliexpress that are over the limit (around 200US) will not be VAT handled at checkout, so on those we will get that 22€ handling fee + 25% VAT of item value and shippingcost when the item arrives and you have to transfer the relevant amount before it will be delivered.
 


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