GST (goods and services tax) is a tax of 10% on most goods, services and other items sold or consumed in Australia. If your business has a GST turnover of A$75,000 or more, you must register. General information, not tax advice; confirm with the ATO or a registered tax agent.
When must an online seller register?
Registration is compulsory at A$75,000 GST turnover, or A$150,000 for non-profits, and you must register within 21 days of becoming aware your turnover will go over. The GST Regulations specify A$75,000 and A$150,000. Count all your sales, not only Amazon: your Shopify store and wholesale sales go in the same turnover.
Below the threshold registration is optional. If you register you must include GST in prices, claim GST credits and lodge activity statements. You register through ATO Online services if you have an ABN, by phone on 13 28 66, or through a registered tax agent. You need an ABN first.
What changes once you are registered?
You charge GST on taxable sales, and you can generally claim back the GST included in the price of things you buy for your business. The net amount is reported on your BAS.
You must issue a tax invoice for a taxable sale above A$82.50 including GST, or on request at any amount, within 28 days. Prices shown to consumers must include GST and all compulsory charges; optional charges such as delivery need not be included.
For example (illustrative): a registered seller sells an item for A$110 including GST. A$10 of that is GST, which is 10% of the A$100 value, and it is collected for the ATO rather than kept as income.
How does GST apply to imported stock?
GST on imported goods is also 10% of the value of the taxable importation. For goods you import over A$1,000, it is collected at the border; see import declaration. Small consignments of A$1,000 or less follow different rules, explained in LVIG.
What do Amazon fees do to GST?
Amazon quotes its selling plan and fulfilment fees excluding GST. Amazon says fees payable by sellers are exclusive of taxes and that sellers are responsible for their own taxes. Whether 10% GST is added to your fee invoices is not published publicly, so check your invoices. The practical guide is GST for Amazon sellers in Australia.
Next step
Blooprint manages Amazon seller accounts for Australian sellers; it does not give tax advice, so keep your registered tax agent in the loop.