Aliexpress collecting tax now?

??

https://www.salestaxcolorado.com/foreign-companies-doing-business-in-the-united-states/

The above doesn’t apply to international sellers selling into Kansas, just other states.

Once again, today I don’t get ANY sales tax assessed by Amazon, EBay, Etc. or any major sellers here IN THE US when whatever I’m buying is shipped to Kansas.

AX isn’t a reseller in a state, they have no authority to tax outside of China, and nobody is making them collect taxes on exported products to the US. They ELECT to collect them… right into their bank (and a scam is a scam).

The FIRST sentence of the article above…

“Any presence in the United States such as subsidiaries, assets or sending individuals, etc. can trigger sufficient nexus with one or more of the 50 states and in some local jurisdictions.”

AliExpress has no “presence” in the United States… they again can’t establish a nexus if they don’t technically exist IN THE USA as a reseller.

Thus, as I’ve said many times on this post… they are charging a FAKE TAX!

The case was South Dakota vs. Wayfair, which changed the standard from a physical nexus (Quill vs. North Dakota), to an economic nexus.

Don’t blame Colorado, blame one of the Dakotas. :smiley:

In lieu of some Federal guideline, what the Wayfair case did was to clear the way for each state to individually decide whether to collect sales taxes from online sales, and under which conditions those collections would be triggered. For some, that includes international sales.

It took some time for states to draw up and enact those statues, and their effective dates, so it has taken some time for adoption of collection policies to occur, also depending on trigger thresholds being reached.

Alibaba shares are sold on the NYSE (BABA), and it is required to submit filings with the SEC, using Form 6-K as a cover to the financial reports it files at home. Because it is listed, it must also file annual reports using Form 20-K. That’s called reporting.

You can even work for Alibaba in the U.S. There are currently openings in California and NY.

The company that owns AX is a multi-national conglomerate with a presence in the U.S., not just some dude peddling cheap Chinese junk from a booth at a night market in Asia (as fabulous as those are), with an online storefront on the side.

Those are the facts. Beating the dead horse of the he said/she said/they do/they don’t accomplishes nothing without any proof from either side.

It’s a fair question to ask, but if states like California and NY, which have never met a tax they don’t like, aren’t complaining, they either means they’re happy with the new revenue stream, or asleep at the wheel. Maybe both.

Bottom line, AX collects sales taxes. Buy from it, or don’t.

I am not a tax guy at all, don’t know too much of it.
But Alibaba Holdings do have a registered address (a real company location, actually) in the US:

U.S. Office:

400 South El Camino Real
Suite 400
San Mateo, CA 94402
United States
Tel: (+1) 1-408-785-5580
Fax: (+1) 1-408-748-1218

So maybe someone could simply contact the US head office and ask for clarification. This address might (!) also be the reason why they have to collect taxes in the US? We only pay the funds, we don’t see how the funds flow on their end. At these amounts of goods sold each country will be eager to get a chunk of the profits.

Always wondered why I have to turn off my VPN when going to Sofirn.com . Now I think I know:

While it’s unclear what the consequences of non-compliance might look like in each country, in general, tax departments don’t muck around. Just as an example, New Zealand consumers can now be automatically fined up to $25,000 for using VPNs to try and hide their true location to avoid GST. What might the penalty then be for businesses who don’t file taxes

Zappaman, you got me looking at this in greater detail than I care but from what I am seeing in my searches is that any company meeting your state’s sales tax nexus must collect sales tax including international companies. I think some companies are still flying under the radar. The burden these companies are under to figure out all the different rates and laws around the world must be tremendous.

This is a pretty informative article : U.S. Sales Tax Explained for both U.S. and Non-U.S. Sellers | Perpetua

Again, you piqued my interest, not trying to start an argument. I think we are going to see this from all sellers as the states start to enforce the rules. It is all relatively new.

State governments are terrible at enforcement . It will probably take a company to turn a competitor in before they catch those not complying.

New Zealand brought that in Dec last year for any overseas business selling over 60K in sales annually. Our tax is 15% which is way too high. I didn’t really care about taxes up until I started my own business, now it’s very difficult with all the different taxes

It is very hard to be a profitable small business today. All the fees, licenses, taxes, insurances, mandates, regulations cut into profits. I told all my kids to go to college and get a job with benefits.

Just bought something on AliExpress, and they have a new text block in their “payment verified email”:

They didn’t have this a short while ago.

edit: forgot to mention - I wasn’t charged any additional sales tax. Product price = paid price. Goods are going to a family member in Switzerland.

No tax over at BG. I was surprised recently when i saw I was charging tax … for ebay :open_mouth:

I stand corrected on agency (nexus) in the USA… and thus: assert that this is WHY AE should NOT be withholding sales tax in Kansas (today).

Just ordered a solar charger from Amazon- no sales tax (as always). I can’t believe Bezos isn’t on top of tax laws in the US 50 states.

Proof is in the market, and the market in Kansas says, “NO taxes withheld!” (yet) :wink:

- this is enough proof to me that AX is charging a fake tax. All else is rhetoric which can be argued til the cow comes home :smiley:

Was it a third party merchant or Amazon? That can affect it.

“Sold by Amazon” :+1: :+1:

And to clarify… I get something from Amazon almost weekly as I live rural and don’t shop much (nearest grocery store is about 20 miles away and I don’t shop at Walmart much as it is either). I can not recall EVER paying sales tax from literally hundreds of Amazon orders made in the last 5 years or so. Same with 80% of online sellers I buy from- and I typically don’t buy from them if they try to charge a tax because I know they should not be trying!

Consider yourself lucky. The tax man comith. Now if they would just fix the frickin potholes here in Pa and pave the roads again like they used to I wouldn’t feel so bad. They added a huge gas tax a few years ago and then used the money to pay pension benefits. :rage:

Kinda like NYC. When building all the bridges and tunnels, no one wanted tax-hikes, so they made them tolled instead, with extreme and sincere (ha!) promises they’d be converted to free once paid off.

First was to just cover the costs of building the bridges/tunnels. Then when paid off, they were just to cover maintenance (but tolls weren’t reduced to match projected costs vs paying off the initial bills). Then any surplus was added to the General Budget, where it’s remained ever since.

Any time new taxes or tolls are created, they never disappear. It’s like asking a tapeworm to just let go and get crapped out. Never happens.

That is what my father always said about the tolls in the city. Pissed him off.

I’ve done some research on this (just Google “Aliexpress tax”), and it seems that this has been going on for a while, but it’s only affecting US residents. Aliexpress is based out of China, which has a different tax system than ours, so they’re trying to collect on sales tax. Still, they don’t actually know where sales are occurring. So it seems like they’re randomly selecting people to charge this “tax” to. I’m sure they use a check stub maker free to make this process much easier and faster.

actually, it also affects Great Brittain and Europe, they call it VAT… and Aliex also collects that tax

The current status is that (if you specify to what country your stuff has to be shipped) prices on the Convoy shop will be adapted to prices incl. VAT for the specified country.