Low Value Imported Goods GST on Amazon: Why a Marketplace Collects GST and What It Means for an Australian Seller

Under Australia's low value imported goods (LVIG) rules, goods with a customs value of A$1,000 or less that are brought into Australia can carry GST collected by the seller, or by the marketplace that sold them, rather than by Customs at the border. When an overseas merchant sells such goods through a platform like a marketplace, the law treats the platform operator as the supplier, so the operator counts the sale and pays the GST. For an Australian seller holding stock in Australia, the LVIG rules generally do not apply: your sales are ordinary domestic sales. This is general information, not tax or legal advice; confirm with the ATO or a registered tax agent.

What are low value imported goods?

The GST Act defines "low value goods" as goods with a customs value of A$1,000 or less that are not tobacco, tobacco products or alcoholic beverages. The rules apply to a sale only if goods are brought to Australia and the supplier, platform operator or a redeliverer delivers or arranges the delivery into Australia. That is the whole point of the name: the goods are imported, the price is low, and the purchase is by a person in Australia.

Higher value consignments follow the normal import path. For a consignment over A$1,000, duty, 10% GST and an import processing charge are payable at the border; at or under A$1,000 the border collects nothing but the LVIG rules can apply to the offshore seller, platform or redeliverer. GST on a taxable importation is 10% of its value.

Why does the platform pay the GST on some orders?

The Act treats the operator of an electronic distribution platform, such as a website, portal, store or marketplace, as the supplier of offshore low value goods sold through it. The operator counts those supplies in its turnover and pays the GST. A redeliverer, such as an offshore mailbox or personal shopping service, is treated the same way where it delivers or arranges delivery into Australia.

Suppliers of offshore low value goods need not issue tax invoices, but they must give the buyer notice of the GST amount when the price is first agreed. So a shopper on Amazon.com.au buying an overseas merchant's item may see GST in the price or at checkout, collected by the operator under this rule.

Amazon does not publish a public page explaining how it applies these rules to each order, so its mechanics are not described here. Any seller-facing rules are inside Seller Central.

When does it not apply?

Three cases take a sale outside the LVIG regime:

• Stock already in Australia. A supply of stock already inside Australia is outside these rules. If you import pallets, clear customs and then sell from FBA warehouses or your own, each sale is a domestic taxable sale.
• High value imports. If a supplier reasonably believes goods will be a taxable importation, with a customs value over A$1,000, the supply is not treated as an LVIG offshore supply.
• Excluded goods. Tobacco, tobacco products and alcohol are outside the low value definition.

What does this mean for an Australian seller?

It depends how your stock reaches the customer.

The second row is a reading of the law, not a quote, and an advisory firm or tax agent should apply it to your facts. Drop shipping has its own Amazon policy limits; see Amazon Australia's drop shipping policy.

If I import my own stock, how does GST work at the border?

GST on imports is 10% of the customs value plus duty, transport and insurance, and is paid at the same time and in the same manner as duty. Certain importers can defer the GST so that it is paid on their next activity statement instead. The ATO lists an ABN, GST registration, online BAS lodgement and monthly BAS lodgement among the conditions for deferral. Ask a customs broker or tax agent whether you qualify.

For a GST-registered importer, GST paid on imports is generally claimed as a credit, which is why the order of steps matters. Import GST and duty for Amazon FBA in Australia goes through that in detail, and importer of record on Amazon Australia covers who the importer is.

Does this affect overseas sellers on Amazon Australia?

Business.gov.au says overseas businesses selling to Australian consumers must register for GST once they reach A$75,000 of GST turnover, and for goods that count includes sales of goods worth A$1,000 or less. That is the overseas side of the same rules. As an Australian seller you compete with those merchants on the same listings, and the platform treatment is one reason a shopper's price from an overseas merchant can include GST.

If you are an Australian business sourcing from China and shipping stock in bulk, you are on the other side of the line: you are the importer, you hold the goods here, and your sales are domestic. The dividing question is always where the unit is when the customer buys.

What should I check for my own account?

1. Where is each unit when the customer buys: overseas or already in Australia?
2. Who ships it into Australia, you, a supplier or Amazon?
3. What is the customs value per consignment, and is it near A$1,000?
4. Are you registered for GST, and do your activity statements include the import GST credit?
5. Does your listing price show GST and what notice does the buyer see?

The LVIG glossary entry gives the short definition, and the Australia hub links the rest of the tax series.

FAQ

What is the A$1,000 low value goods threshold? It is a customs value of A$1,000 or less, excluding tobacco, tobacco products and alcohol. It is not the retail price shown to the buyer; it is the customs value of the goods.

Why does Amazon collect GST on some orders? The law treats a marketplace operator as the supplier of offshore low value goods sold through its platform, so the operator pays the GST. How Amazon applies it to each order is not published by Amazon.

Do the LVIG rules apply if I hold stock in an Amazon fulfilment centre in Australia? Generally no. Stock already inside Australia is outside the offshore-supply rules. Your sale is an ordinary domestic one, with ordinary GST if you are registered.

Do I pay GST when I import stock under A$1,000? At or under A$1,000 the border collects nothing, but the LVIG rules can apply. Bulk stock for resale is usually a different situation; get a customs broker's view.

Does the buyer get a tax invoice? Suppliers of offshore low value goods need not issue tax invoices; they must notify the GST amount when the price is first agreed. See Amazon Australia tax invoices for the domestic rules.

Does a consignment over A$1,000 get the same treatment? No. It is a full import: duty, 10% GST and an import processing charge are payable at the border.

Next step

Map where your units are when they sell, then take the model to a customs broker and your tax agent. For help with FBA inventory and Amazon-side planning, Blooprint's Amazon account management can assist; tax and customs advice come from licensed professionals.