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

Related Stores

AliExpress
AliExpress
Marketplace

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.

  • [Deactivated] 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)

  • doperst on 02/06/2024 - 02:28
    +1

    Bought a phone today. Order total was US$308 (after $50 discount), was charged US$33 tax.
    US $8 more that it should be!
    I wonder if I can dispute it and get a refund for that amount. They've probably overcharged me hundreds of dollars over the years..

    We need a class action lawsuit against these greedy bastards!

  • bamzero on 30/07/2024 - 16:33

    Supposedly a team working on this now.

    Like I said there, be good when I see it. It's been going on so long that they are surely aware do hopefully they do actually plan to fix it now

    Placed an order, USD prices:

    Item $27.34
    Store coupon -$1.37
    Coins: -$1.00
    Shipping: $0
    Tax: $2.60
    Total: $27.57

    So slightly over by 10c. Possibly calculated tax on item minus store discount, but not coins discount.

    Of course cashback tracked at the correct ex-tax price of $24.97

  • megadeth on 15/09/2024 - 16:51

    Still happening in mid September…. :( almost a year since this thread started. Looks like they're not interested in fixing this issue at all…

  • drspy00 on 02/11/2024 - 01:20

    This is still happening and getting nowhere with chat support. Noticed with the aliexpress coupons, all present and past orders calculate the tax at the non discounted original price, not the discounted price. If this is official Tax being paid to the goverment (Would like to think it is, and its possible to verify it if they open packages on arrival), could there possibly be a way to report this to the tax office? Could it be possible to get a refund that way? I have so many orders where ive noticed this and would be willing to push and with the added bonus of verifying the tax actually is gettng paid to the government. I am betting they are charging the tax at the full rate and keeping it so has no real reason other than making things expensive.

    • megadeth on 14/11/2024 - 01:14

      Class action? Have we got any lawyers on OzB?

  • larndis on 13/11/2024 - 06:59
    +1

    I don't usually shop at Aliexpress but have been looking at a few random items lately, all different sellers and the tax is never 10% (always more). Seriously, how hard can it be?

    • drspy00 on 14/11/2024 - 02:31

      Do you mean overcharging with the coupons? or overcharging without any coupon/discount? They seem to calculate the tax on the item before it was discounted, so you always pay the full tax.

      • larndis on 14/11/2024 - 10:43

        No idea since the prices and discounts are constantly changing (and completely opaque), but pretty sure it's illegal for the GST to be calculated on anything other than the price charged.

  • drspy00 on 23/11/2024 - 23:15
    +1
    Merged from Does AliExpress GST Really Go to Australian Government? Dodgy Tax Practices?

    Does anyone know if the GST paid on Aliexpress or other sites really makes it way to the Australian Government or is it just a nice little earner for them that also makes them seem more legitimate?

    Noticing comments about tax being calculated wrongly. I'm noticing it always calculates the tax at the original full price before any discounts, so you are always paying the absolute highest GST even if you get a significant discount. It is My understanding that GST must be charged at 10% of the price you paid, so if you go to Myer and get something for 50% off, or on their website, you don't pay GST at the original price!

    So if this is legitimately collected for the tax office, Who do I report this to? Over the years it would add up to hundreds of dollars with my orders. I tried to talk to Aliexpress support and email about this but they say something like. "We are unable to touch any taxes since it is set by Government" but it is them setting it to calculate this way.

    If they do legitimately pass on this tax to the ATO, you can bet they do so at the rate minus any discounts and keep the change!

    Also, shouldnt they be giving a tax invoice if this is legimate?

    The other funny thing is with any cashback site it calculates cashback after any discount.

    Am I misunderstanding something? It seems the GST charged by all sites gets very little talk online or in person about it. It just kindof happened out of the blue and everyone accepted it, unless you are someone that regularly gets expensive items overseas you will probably not even know about it.

    • Clear on 24/11/2024 - 12:42
      +2

      Report it. Your invoice has their ATO assigned tax number

      • drspy00 on 24/11/2024 - 13:53

        Never seen the invoices before. The invoice is in CNY, and only shows the full original price before any discounts only. Is that a breach of any tax rule to do this? Its on every order so not exclusive to me, or a new problem its just ive noticed it for the first time.

        • Clear on 24/11/2024 - 14:42

          The tax invoices have always been in CNY. AliExpress for the customer trades in USD but the stores trades in CNY. There's no breaches doing different currencies.

          It does show the platform number for the ATO. Overseas companies may be issued a number instead of an ABN.

          • drspy00 on 24/11/2024 - 14:47

            @Clear: I didnt mean because of the currency, Its just a bit harder to calculate because its different to the USD transaction.

            I meant is it a breach to be charging tax on the full price paid? obviously would have to show proof to them thats not on this invoice. Don't want to waste anyones time but the tax is bad enough without having to pay extra.

            • Clear on 24/11/2024 - 15:11

              @drspy00: Yes the wrong tax is an issue. Calculate the currency by using MasterCard currency converter on the date of the transaction

              • drspy00 on 24/11/2024 - 16:30

                @Clear: All differs greatly from USD, which isnt really the issue, its more that the tax was calculated at the original price, minus any discount. This is on all orders going back years, so I guess Id just contact the ato and ask, if theres a way of getting something back, or if they can put pressure on Aliexpress. They may not even get tax from Aliexpress anyway. I know Aliexpress probably just like simplifying it by having it this way.

                I do know, with ebay if you buy something at a discount say 20% coupon, the TRS at the airport give the tax back at the full price, as the full price is whats on the invoice, so maybe it is actually above board and just an unlucky thing for buyers overseas but can benefit us within Australia. Come to think of it, does this mean we can claim tax back through TRS at the airport on departure too?

  • NotJoking on 10/01/2025 - 01:07

    So this happened to me today. Tax was charged at double the %10 rate for all items. My order had 6 items in it.

    Previous orders all worked fine, including those from 3/1, 2/12 and 1/12.

    Have raised it with support.

Login or Join to leave a comment
Login Join