Email i just received from Aliexpress.
Australia GST Tax Notice
Hello,
From 1 July 2018, Australian goods and services tax (GST) 10% will apply to each order valued at A$1,000 or less, and AliExpress is required by law to collect such GST and remit to Australian Taxation Office.
For more information, please visit :
https://www.ato.gov.au/Business/International-tax-for-busine….
Sincerely,
AliExpress.com
AliExpress is not "required by law to collect such GST" as the Australian Government has no ability to impose such a law on a foreign entity.
Alibaba group is a legitimate mnc with a branch in Melbourne. They’re required to comply with Australian tax legislation.
http://www.abc.net.au/news/2017-02-05/alibaba-china-online-r…
AliExpress is a separate legal entity from their parent
Aliexpress being a subsidiary of baba doesn’t mean that they’re except from complying with Australian tax legislation. It’s much easier and cheaper for baba to charge gst than to start a fighting with the ato.
Reality is though that AliExpress is not "required by law to collect such GST" as the Australian Government has no ability to impose such a law on a foreign entity
No the law now states they have to collect GST if selling into Australia, but you are right, they have no way to impose it on a foreign entity.
Any large business who wants to do business with Australia will comply with Australian law if they're being told by the Australian government to do so, they're not going to pick a fight which can damage them long-term, over something that has no chance of being overturned in a court of law. Hence why there are so many GDPR notices flying around, and why no one wants to trade with Iran even when their host governments tell them to do otherwise.
Exactly what do you contemplate the Australian Government could/would do if (for example) AliExpress said "screw you" we are not your tax collector - collect the GST impost yourself at point of entry (as do every other country) rather than impose the cost burden on us?
Tell you what - SFA!! They have absolutely no legal right and any attempt to intimidate (read force) a foreign company to collect the tax would invite an almighty trade ware.
Edit
I'm Australian and I live here, my wife is Filipina and lives in the Philippines (don't ask, it's complicated). Does anyone know if AliExpress' GST collection will apply if I buy something from them and have it sent to her? What about if she buys something and has it sent to me?
My guess is that if the delivery address is in Australia, GST will be added. So, if you get it sent to her - no GST - but then she would have to repackage it/forward it on to you - which will cost more money and possibly also be stopped by customs till duty is paid.
Even if it's marked as gift?
hhmm, possibly.
best to mark it as drugs.
I assume he visits his wife or his wife visits him regularly. Unless it's urgent, no need to separately ship it I'm guessing. (And if it's urgent, probably shouldn't be getting it from AliExpress anyway).
I got charged 10% on a $185 order from AliExpress.com, it just got added on before check out.
Really happy I did not pursue my online business any further, cause I'd be taking a 10% net profit pay cut.
I just do it on the side and try to make under $10,000 a year to avoid ebay passing on my details to ATO.
It's 20k a year for eBay?
Is this also true if the item is sent from a warehouse that is in Australia?
What if I bought more than 1000aud, will they still charge me a 10%gst?
Sounds like a scam. Don't pay it.
You don't have a choice on the matter.
The only thing you can do is take your business elsewhere.
Received the same notice overnight. Reality is though that AliExpress is not "required by law to collect such GST" as the Australian Government has no ability to impose such a law on a foreign entity. They have even said this.