AliExpress Overcharging Buyers with TAX (GST)

LSNDTN on 16/11/2023 - 00:25

Noticed a couple of times that AliExpress's tax calculation was significantly different from the ATO's regular 10%.
Every time it puzzled me, but I never addressed it until the last 11.11 sale.

Decided to make a few purchases, played with the numbers, and found inconsistencies.
Tried to contact them via chat multiple times, but no luck—always ended up with links and excuses.
Until one day, a Customer Service Agent connected me with someone who explained the procedure.
AliExpress calculates tax for each product, not the total order amount.
Example: If you buy an item for AUD$100, and the seller lists this item for USD$100, you will pay tax of USD$10, approximately AUD$15.30.

I ended up getting a full refund for my reported purchase and was promised that all my orders would be reviewed, with assurances that all Australian customers would be refunded after the completion of their internal investigation.

[SCREENSHOT]
(https://files.ozbargain.com.au/upload/173224/108358/screensh…)

General Discussion

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Comments

  • jv on 16/11/2023 - 00:34

    I've only ever bought single items from them.

    • SNDTN on 16/11/2023 - 00:47
      +1

      It appears they always calculate based on the seller's listed price rather than the sale price. This method may lead to discrepancies in tax amounts, as it doesn't account for any discounts or promotions applied during sales. It's important to be aware of this when making purchases on AliExpress.
      (https://files.ozbargain.com.au/upload/173224/108359/screensh…)

      • jv on 16/11/2023 - 00:49
        +2

        Sounds dodgy…

        Not much you can do if they are not an Australian company.

  • Dumax on 16/11/2023 - 01:32
    +1

    I buy quite a bit of stuff from Aliexpress and have noticed this as well. However it only impacts some "types" of items.

    For example, the tax is (more or less) correct for this order after discounts. The "original" prices for these were $28 and $48 USD respectively.

    However, on this order the tax is approximately 17.5%. Unlike the previous order, this was a "3 items from US $1.99" order with the original discounted prices (prior to the reduction to $1.99) being $5.56, $4.08 and $3.38 USD - the total of which is $13.02 which means that the $1.05 tax paid is only ~8%. I tried tried various combinations of these types of items and the calculated tax always equated to $1.05, no matter the original/discounted price of the item.

  • franco cozzo on 16/11/2023 - 03:26

    about time…ive mentioned this recently here in a couple comments in ali threads and i also sent in a support ticket and got no results. good on ya for following it up!

  • RedHab on 16/11/2023 - 06:48

    Yes, I've also noticed their GST calculations are too high.

  • ESEMCE on 16/11/2023 - 08:39
    +6

    Would love to see a report from government showing all the extra GST revenue flowing in from these nice, honest, overseas corporations who always pay the tax that is owed… /s

    Or perhaps Ali (and the rest) all slug us the +10% and keep all/most/some of it.

  • pegaxs on 16/11/2023 - 09:42
    +10

    AliExpress are not passing on GST. Sure, they take it, but I doubt that they pass much of it on.

    The day Gerry “cry a bay” Harvey got his little win, all of these Chinese reselling sites just laughed and happily put the GST on. Just means another 10% into their pockets and a legitimate excuse to charge it… “it’s not us, it’s your government…”

    There is no tracking after you pay it that it has actually gone to the Australian government. I have very great doubts that 100% of the GST collected through these sites is remitted to the ATO.

    • joelmuzz on 16/11/2023 - 11:24
      -1

      My transactions come up as "AliExpress Melbourne", so if being processed through local company then ATO will be getting paid. Theres an AliExpress ABN in VIC and 2 in NSW.
      They can see every Australian bank card transaction and assuming Ali Melbourne is an Australian bank account they see everything in and out and could put a freeze on the account if they are being shortchanged.

    • c64 on 16/11/2023 - 12:18

      AliExpress are not passing on GST

      don't know. all the issued tax invoices include the full over-charged GST

    • Seraphin7 on 16/11/2023 - 13:25
      +2

      You are 100% correct. The Gerry Harvey tax has done next to b&gger all other than (1) add another layer of bureaucracy and expense to both government and the more legitimate outfits, (2) jack up the cost of items by (at least) 10% where the reason for purchasing had nothing to do with the 10% tax in any event, and (3) allowed less scrupulous outfits to profiteer from the whole arrangement.

      And now Gerry has put out these frankly bizarre ads in support of Optus. Yet again, follow the money and use your imagination to determine how much GH/HN are raking in from commissions from Optus.

  • c64 on 16/11/2023 - 12:20
    +1

    also ali's coupons seem to be post-GST rather than pre-GST. store coupons seem to be pre-GST

  • SNDTN on 20/11/2023 - 20:02

    It's concerning how they proceed without much consideration. I randomly checked other sites like Amazon and eBay, and they consistently have ATOs at 10%.

  • Sammy Boi on 22/11/2023 - 21:34

    I made my first purchase from AliExpress a couple of days ago and I noticed the tax amount looked dodgy.

    Subtotal AU$5.32
    Shipping Free shipping
    Tax AU$1.40
    Total AU$6.72

    Am I tripping or should GST be $.53 not $1.40

    If I go back and look at the product it's now for sale at $13.76 10% GST on that is Dollar $.38.

  • Sammy Boi on 22/11/2023 - 21:54

    Did a bit of research and it's clear they have been charging GST based on the original price or something and not the sale price paid.

    I'm not gonna chase them up over less than a dollar but hopefully this is sorted promptly

    https://community.ato.gov.au/s/question/a0J9s0000001Fch/p000…

  • Wiz.au on 11/03/2024 - 12:48

    Still happening…..
    AliExpress is overcharging GST on their "Pick 3" deals. I have contacted them many times over the last month and they have done NOTHING about it.

    Overcharged GST 1
    Overcharged GST 2

    They tried to tell me it was the Seller, but it's AliExpress that charges the GST at Checkout and collects it, not the Sellers. Then they tried to tell me it was Shipping Fees, but it specifically says "Tax", and all the items in the cart are FREE Shipping. Then they tried to say it was 'Extra Fees put on the items by the Seller.' Rubbish! I checked with the Sellers, they said there is no way for them to add "Extra Fees" in AliExpress.

    Now I know what the exact problem is, I will try to get a refund from them, again.

  • Wiz.au on 11/03/2024 - 15:54

    OK, I've worked something else out after downloading all my invoices and checking.
    It appears to be only one 'store' - "Digitailing" when you use the "3x Pick" option.

    The Invoices are at "Full Price" in $USD.
    But my PayPal records show I paid what the Checkout said, with the 'Discount' applied to the item prices, but the GST being charged on the non-discounted FULL price..

    Records:
    195233209
    405049431
    623457579
    836140223

  • NeoX on 11/03/2024 - 16:41

    Ok I haven't noticed this at all. I always use charge in USD cos I get better rates on my 28 degrees. Checking through history only ever bought 1 item at a time and tax is calculated correctly with discounts/promos. There's 1 order where gst is calculated wrong because "coins" were used as one of the discount. maybe that's the problem?

  • mompon on 05/04/2024 - 11:25

    A bit late to the party… I have recently ordered items for ~Aud$1800 and was overcharged every time there was a discount/cupon applied to the order. (Only) Aud$16 in total, but encouraged by the previous posts, I contacted them in the help-chat. The agent tried to provide explanations (probably copy-paste), but they were not satisfactory to resolve the issue. I mentioned that they are a registered business in AU and can get into trouble for this practice. Following that comment, the agent took the matter to the expert team and I will receive an email. Will see and update the post once received.

    • chris_21 on 15/04/2024 - 14:33
      +1

      How did you go?

    • Buyer0fBargains on 25/04/2024 - 09:00

      Ye I’d love an update on this, whenever I’ve had something taken to the “expert team” I receive a single sentence email about a week later, they offer no help and there is no way to respond. They usually repeat whatever the chat agent said.

  • OkWing99 on 26/04/2024 - 15:51

    Yes, this happens on the app as well. I think it's a bug on the system. Had a chat with the rep, but they denied it's an issue. (after sending multiple screenshots).

    Then I cleared the cart, and added the same products on the desktop and got the correct GST. (The app was showing about 17% GST)

    I noticed it again a few weeks earlier.

    It's a bug. Either clear cart or try with another browser. It'll show correct GST.

    I wonder how many millions they charged with higher GST without noticing. (Probably I did in the past as well)

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