I wonder whether the correct GST collected from Amazon is paid to the ATO?
I bought an item bought via amazon
Item Subtotal: $140.04
Postage & Packing: $0.00
Deal of the Day: -$73.08
Total before GST: $66.96
GST: $14.01
Total: $80.97
Paid by Mastercard: $80.97
As you can see, the GST is calculated on the item prior the discount and not 10% of the total before discount.
Amazon should correct the GST and charge us less.
What do people think?
They said ask on OzBargain
Why did you pay if you didn’t think it was right?
If you bought the item on amazon.com.au, the GST should have been included in the quoted price, as is required by law of any other business operating in Australia. The same goes for ebay.com.au
The reality is, they don't and one wonders if an exception has been made for these companies as a result of political donations of the correct magnitude.
Here in Australia we pay only 10% for GST of the final price.
Amazon charges 10% of the original price and not the final discount price.
The OP did too….
Just Amazon put payment in of $73.08 and the OP had to paid the rest.
It really comes down to how its 'sliced' and 'diced'.
Amazon doesn't see the item as 'discounted' but them putting in part payment towards the item.
Go to the ACCC. There are probably thousands of people who missed this and Amazon is taking in more than they should
I think the trick is that their promo amount also includes GST. Just checked an order of mine and in the order summary it says
Order Summary
Item(s) Subtotal: $33.91
Delivery: $0.00
Total Before GST: $33.91
GST: $3.39
Total: $37.30
Promotion(s) Applied: -$11.09
Grand Total: $26.21
and on the tax invoice
1
Zojirushi SM-KHE36AG Stainless Steel Mug 16 oz
Black | B00CHOUI86 AUD33.91 10% AUD37.30 AUD37.30
Promotions -AUD10.08 -AUD11.09 -AUD11.09
TOTAL: AUD26.21
GST Exclusive Subtotal
10%
AUD23.83
GST Subtotal
10%
AUD2.38
GST TOTAL
AUD2.38
Sorry for the shitty pasting but you can probably interpret enough from it
You made me go back check my last 4 receipts from Amazon: All purchased during this Prime sale.
Item Subtotal: $598.18
Postage & Packing: $0.00
Deal of the Day: -$200.00
Total before GST: $398.18
GST: $59.82
Total: $458.00
Item Subtotal: $177.27
Postage & Packing: $0.00
Promotion Applied: -$23.64
Total Before GST: $153.63
GST: $15.37
Order Total: $169.00
Item Subtotal: $49.95
Postage & Packing: $0.00
Promotion Applied: -$18.14
Total Before GST: $31.81
GST: $3.18
Order Total: $34.99
Item Subtotal: $80.56
Postage & Packing: $0.00
Promotion Applied: -$24.17
Total Before GST: $56.39
GST: $5.64
Order Total: $62.03
Depends how the discount is structured, whether it's a discount from the seller, or a reimbursement by Amazon. So:
If it's a seller discount, GST should be charged on the discounted price, but if it's an Amazon reimbursement (that some eBay sales are because Paypal is the one paying the discount), then the seller's price stays the same (and so GST is on the original price) and you get an amount reimbursed by Amazon when you pay.
So same as eBay where you see the full amount on a tax invoice even if you buy at a 20% off promo. Personally I like seeing more GST paid on an invoice ;)
What did Amazon say when you asked them?