GST Charges on Amazon Is on Original Price and Not Discounted Price

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Amazon AU

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• 

  brownbag on 27/04/2018 - 15:25

  +2

  It should be on the discounted price. I think that's a mistake. But you still paid the right price - I just think they've invoiced it incorrectly.

  • 

    vaccant on 27/04/2018 - 15:29

    Please explain further..how come it is the right price? if the new price is $111 then the GST should be $11 ? Sorry new to the GST rules just trying to understand

    • 

      mskeggs on 27/04/2018 - 15:41

      +2

      Brownbag means the total you should expect to pay is 201.82 + GST, less 50% less $20. So $222 full price inc GST, less 50% is $111, less the $20 new customer discount is $91. Which is what you paid

      • 

        vaccant on 27/04/2018 - 15:54

        I think GST should be $10 if the new price is $100 for the product.

      • 

        mskeggs on 27/04/2018 - 15:59

        @vaccant:
        It should be, but as brown as said, the line item is incorrect, but you were charged the correct total.

    • 

      dazweeja on 27/04/2018 - 15:44

      +1

      It's the right price because it's 50% off $222 then a further $20 discount. All of those calculations are done on the inc GST price. What price were you expecting if not $91?

      GST is wrong on the invoice - should be $8.27 (1/11th of discounted inc GST price). They've calculated it on the non-discounted price (1/11th of grill + 1/11th postage) which is not valid. It's pretty messed up that they'd get it wrong tbh.

    • 

      loke on 27/04/2018 - 15:46

      GST is on the discounted price

      see here, the ato website for guidance : https://www.ato.gov.au/Business/GST/In-detail/Rules-for-spec…

      that GST is a weird calculation taking into account an original price of :
      Total $227.99 with GST 20.72
      $222 for the grill
      $5.99 for the shipping (due to the shipping offer)

      and then factoring in the discount (edit - iirc i usually see this sort of issue on coca cola amatil invoices w/ trade discounts or w/e)

  • 

    Sunny84 on 27/04/2018 - 15:55

    Would be fun trying to claim TRS lol

  • 

    R-Man on 27/04/2018 - 16:33

    "if you made a mistake in your calculations but the answer is still correct, you must have made 2 mistakes" - my year 12 maths teacher

    besides incorrect GST, what's the 2nd mistake in these calculations that make the total $91 still correct?

    Is it the fact that the discount line -$111 is based on the included-GST price? (so 50% of $222, instead of 50% of $201.82)

    • 

      R-Man on 27/04/2018 - 16:43

      Fixed!

      Item Subtotal: $201.82
      Postage & Packing: $5.45
      FREE Shipping: -$5.45
      New customer offer: -$18.19
      Mothers Day 50% off: -$100.91
      Total before GST: $82.73
      GST: $8.27
      Total: $91.00

      All discount amounts should not have included GST. Now to send Jeff Bezos my bill.

• 

  Baysew on 27/04/2018 - 16:04

  +1

  Best to consult the 'architect' of the GST Dr John Hewson how GST works on the sale of a birthday cake.

  John Hewson: GST on a birthday cake

  • 

    neo on 27/04/2018 - 20:57

    Just lost a minute 45 seconds of my life.

• 

  Quantumcat on 27/04/2018 - 17:10

  -2

  If the GST is too high but you're paying the right price, this would be handy for people with businesses that turn over enough to pay GST and can claim it back.

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  craigd on 27/04/2018 - 18:45

  They should just list the GST up the top before discounts, then it makes sense. My invoice looks the same

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  foxmulder on 27/04/2018 - 21:40

  The best way to do is to ask Amazon on the GST calculation and let us know what they say.

  • 

    vaccant on 30/04/2018 - 12:29

    I did and the Customer support guy got confused himself of the calculation and game me $10 credit