GST for Amazon Sellers in Australia: 10%, the A$75,000 Threshold, Registering and GST Credits

If you sell on Amazon.com.au as a business, GST is a 10% tax on most goods sold in Australia. You must register for GST when your GST turnover is A$75,000 or more, and you have to do it within 21 days of becoming aware that you will go over. The A$75,000 figure is set in the GST Regulations. Below it you may choose to register. Once you are registered, GST goes into your prices, you report it on your activity statement and you can generally claim back the GST in what you buy for the business. This is general information, not tax or legal advice; confirm with the ATO or a registered tax agent.

Do I have to register for GST to sell on Amazon Australia?

Amazon does not make GST registration a condition of opening a seller account. Its registration guide lists a GST registration among several documents you can use to verify a business, alongside an ABN or ACN extract. The same guide says individuals can choose "None, I am an individual" for the company registration field, so an ABN is not mandatory for an individual seller.

The obligation to register comes from the tax law, not from Amazon. If your GST turnover is below A$75,000 you may choose to register, and if it is A$75,000 or more you must. For the ABN side, read do you need an ABN to sell on Amazon Australia.

How is GST turnover worked out?

The ATO describes GST turnover as your gross business income, not your profit, with the GST included in your sales taken out. Two points trip up marketplace sellers.

• It is revenue, not profit. A seller with thin margins can pass A$75,000 of sales while making very little money. Sales before Amazon's fees count, because the test looks at your income, not what is left after costs.
• It counts all your businesses. The ATO's wording is gross income from all businesses, so Amazon sales add to anything you sell through your own website or other channels.

You are measured in two ways: your current turnover (this month and the previous 11) and your projected turnover (this month and the next 11). If you expect to reach A$75,000 you should register even if you have not got there yet. A seller launching with a large first stock order and an ad budget should look at the projection, not just last month's sales.

When should I register, and how?

Register within 21 days of becoming aware that your turnover will go over the threshold. If you already have an ABN you can register online through ATO Online services, by calling the ATO on 13 28 66, or through a registered tax agent.

1. Get your ABN first, as GST registration is attached to it.
2. Work out your current and projected GST turnover with your sales to date and your Amazon forecast.
3. Register online or ask a tax agent to do it, and note the effective date.
4. Add the registration to your Amazon account, as described below.
5. Start including GST in the price of most sales and keep tax invoices for what you buy.

Should I register voluntarily before I hit A$75,000?

It is a real choice, and it cuts both ways. Registering lets you claim back GST on business purchases, and the ATO page for registered businesses says you can generally claim back any GST included in the price of things you buy for your business. But registered businesses must include GST in the price of most goods they sell, even when turnover is under the threshold.

A stock-heavy start-up that pays GST on a big import or a large supplier invoice and expects to make taxable sales will often be owed credits at first. A seller who makes small sales to consumers with few costs may gain little. Whether it suits you depends on your margins and your customers, and it is a question for a registered tax agent, not for Amazon.

How do I put GST into my Amazon prices?

Amazon.com.au shows shoppers a price that includes GST, and Amazon says GST applies to most items sold on the site "if it is relevant to the sale". So the price you enter in your listing is the amount the customer pays. If you are registered, one eleventh of it is GST that you pass to the ATO.

For example (illustrative inputs): you list a product at A$110.00 including GST.

The A$10.00 is not yours. If you are not registered, there is no GST to pass on and the whole A$110.00 is revenue, but you also cannot claim GST credits on your costs. When the GST is exactly one eleventh of the total, the ATO allows an invoice to say that the total price includes GST.

Build your margin on the GST-exclusive figure, because that is the money you keep. The Amazon Australia profit calculator has a GST status switch that does this for you. Note too that Amazon's referral fee percentages are applied to the price in Amazon's fee table, and Amazon's pricing page does not state whether the percentage is taken on a GST-inclusive or GST-exclusive price, so confirm it against a real order in your reports.

How do I tell Amazon I am registered for GST?

Read the tax registration terms in Seller Central before you enter an ABN: Amazon's terms can treat an ABN from a resident Australian seller as confirmation that the seller is registered for GST. That matters, because an ABN holder who is not registered for GST should not simply enter the ABN and assume nothing follows. Confirm your GST status on the ABN Lookup record at abr.gov.au, and make sure the status in your Seller Central tax settings matches it.

Amazon walks through the tax interview screens only inside Seller Central, so check the current clicks there.

How do GST credits work for an Amazon seller?

A GST credit is the GST you paid on something bought for your business. You subtract it from the GST you collected when you lodge your activity statement. Most Amazon sellers have credits on stock bought from Australian suppliers, packaging, software, ad spend and, where it is charged, Amazon fees.

• Tax invoice. For a purchase above A$82.50 including GST you need a valid tax invoice to claim the credit.
• Small purchases. For A$82.50 or less, a receipt, cash register docket or invoice is acceptable.
• Time limit. Time limits apply to claiming GST credits, so claim them in the period you hold the tax invoice and check the ATO's current rules if a claim is late.

Whether GST is added to Amazon's own fees on your account is a separate question; see GST on Amazon seller fees in Australia. Imported stock has its own GST step at the border, covered in import GST and duty for Amazon FBA in Australia.

What do I report, and how often?

Registered businesses lodge activity statements reporting total sales, GST on sales and GST credits. Cycles, labels and the reconciliation of Amazon reports are in BAS for Amazon sellers in Australia. The GST glossary entry has the short definition, and the Australia hub lists the rest of this tax series.

FAQ

Do I need GST registration if I sell through Amazon FBA? The test is your GST turnover, not how the order is fulfilled. FBA, merchant fulfilled and your own site all add to the same turnover figure. If it is A$75,000 or more you must register, whichever way the goods reach the customer.

Is the A$75,000 threshold per year? It is measured on a rolling 12-month basis, looking at the current month plus the previous 11 and the current month plus the next 11, not a financial year. A seller can cross it part-way through a year.

Can I charge GST if I am not registered? No. GST is charged by registered businesses. If you are not registered you do not add GST to your prices and you do not claim credits. Amazon shows customers a GST-inclusive price, so an unregistered seller's price is simply the amount they receive, less Amazon's fees.

Does Amazon collect GST for me? For goods you sell from stock in Australia, Amazon does not take on your GST reporting; you remain responsible for your own taxes, which an Amazon staff reply to a seller states directly. Amazon has a separate role for some overseas sales; see low value imported goods and GST on Amazon.

Do I have to be GST registered to claim Amazon fees as an expense? Fees can generally be a deduction for income tax whether or not you are registered, as business expenses. GST credits are the separate step and need registration. Check the split with a tax agent.

What if I pass the threshold and register late? The rule is to register within 21 days of becoming aware that your turnover will pass the threshold. Late registration can mean GST owing on sales you made without charging it, so act as soon as your forecast shows you will pass.

Next step

Settle your registration and cycle with a registered tax agent first, then set your prices on the GST-exclusive figure. If you want help with the Amazon side, Amazon account management in Australia from Blooprint covers listings, ads and account health; tax and accounting stay with your agent.