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

    • drspy00 on 13/08/2025 - 16:26
      +1

      Seems like no solution because aliexpress pretend the problem doesnt exist.

  • Chrisco123 on 30/08/2025 - 14:57
    +3

    I'm going to be making a complaint/query to the Australian Tax office about this.
    Aliexpress have said that they charge the GST on the original price before the discount. They said that they pay the extra cost for you but you have to pay all the tax.
    It's very deceptive and likely totally illegal.
    Watch this space.

    • bamzero on 31/08/2025 - 14:10
      +1

      According to the ATO marketplace sellers are supposed to charge GST on the amount the seller will receive. So if the seller charges $100 and the marketplace is footing the bill for a 50% discount then the GST is still on $100.

      The numbers still dont seem to add up sometimes, like when its a store coupon one would assume the store is offering the discount therefore the GST should be less.
      There is no transparency though so we dont know whats going where, and unfortunately this has been going on so long that I don't see it changing. Wish they would just go back to the old days of sub $1000 no GST.

  • peteru on 11/09/2025 - 13:08
    +1
    Merged from Check Your AliExpress Orders for Excessive Taxes Being Charged

    You may want to check your recent AliExpress orders for tax calculations. I've just noticed two orders where the tax was overcharged. In one case it was 105% instead of 10%.

    Here's an example:
    Tuya Smart Socket WiFi Intelligent AU Plug With Power Monitor
    Wireless Timing Socket Voice Control Works With Alexa Google Home
    WiFi 1PCS, AU, 100-240V, CHINA
    x1 AU$1.53
    Free returns, Delivery guarantee
    Subtotal AU$1.53
    Shipping Free shipping
    Tax AU$1.61
    Total AU$3.14

    As you can see the tax is more than the product.

    I've reached out to AliExpress and they escalated the case and should respond with an email in the next 48 hours.

    And yes, that pricing is real. A Tuya smart plug delivered for under two dollars (if charged correctly). Limit was one per customer, otherwise I would have bought a bag full. It was only available at that price for about an hour.

    The product has been delivered, hooked up, configured and working just fine with my coffee machine using Home Assistant.

    While Tuya integration isn't as desirable as ESPHome, at that price it was a no brainer.

    • MS Paint on 11/09/2025 - 13:09
      -5

      This topic is a sold as time itself. Done to death on here. FFS.

      • peteru on 11/09/2025 - 13:10

        In that case it bears repeating over and over, since people are still being caught out.

    • Far Cough on 11/09/2025 - 13:11

      How? You have an intro offer, but you pay the tax on the true price of them item.

      • peteru on 11/09/2025 - 13:12

        Which is not correct, because the tax is GST and GST is calculated on the money changing hands, not some arbitrary valuation.

        • Far Cough on 11/09/2025 - 13:25

          When you purchase from AliExpress, the introductory GST is applied to the item's base price before any discounts or coupons, not the final discounted price.

          Seems unfair, so register for ABN and claim the GST back.

          • peteru on 11/09/2025 - 13:28

            @Far Cough: This wasn't using any coupons or discount codes. It was the advertised price.

    • BoltThrower on 11/09/2025 - 13:22

      105% instead of 10.5%? I think I know who the culprit is!

    • Succulent Synth on 11/09/2025 - 13:43
      -1

      The real cost would be if insurance refuses to cover a fire caused by a non-compliant imported device

      • peteru on 11/09/2025 - 14:02

        It's a WHDZ01 and as far as I can tell it has enough certifications to be a non-issue in the above scenario. It's no different to what's available locally.

    • plmko on 11/09/2025 - 14:02

      GST is applied to the whole original price because someone is funding the discount. It is the same with Ebay why the supplier issues an invoice pre-discount despite you paying the discount price.

      • peteru on 11/09/2025 - 14:08

        It was the listed price, no mention of any additional discounts or original price. The same listing is now showing $7.11, no mentions of any discounts. So, even if the current price was some kind of "original price", the GST would still be only $0.71.

        • MS Paint on 11/09/2025 - 14:37
          -1

          the GST would still be only $0.71

          Ask AI how GST is calculated because your maths ain't mathing.

          • peteru on 11/09/2025 - 15:01

            @MS Paint: What are you talking about?

            10% GST on $7.11 (ex-GST) price is $0.71.

            I don't need AI to hallucinate me some kind of fictitious answer.

            • MS Paint on 11/09/2025 - 15:40

              @peteru:

              $7.11 (ex-GST)

              You've moved the goal posts

              • peteru on 11/09/2025 - 17:25

                @MS Paint: No I did not move the goal posts.

                AliExpress always shows prices without GST. You'll only ever get to see the GST added at checkout.

                Very similar to buying directly from Amazon US, except Amazon US can calculate GST properly.

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