Amazon has just announced that it will charge 10% GST on Selling on Amazon fees from 1 July 2017 for Australian based Amazon sellers unless they are registered for GST.

So What Does This Mean?

  1. You will have to provide your ABN (Australian Business Number) to Amazon, and
  2. You will have to register with the Australian Taxation Office for GST and lodge either quarterly or annual Business Activity Statements.

If you do not do both of these, then Amazon will charge you an additional 10% on your Selling on Amazon fees ( that’s the 15% Amazon Commission), so the commission would be 16.5% of sales.

Providing your ABN number to Amazon and not registering for GST with the ATO will result in you paying 10% GST on Amazon commissions. The ABN that you provide to Amazon enables them to easily check whether you are registered for GST via an API.

At this stage, I believe that the GST only applies to the Amazon commission and not to the FBA fees because FBA fees are services provided in USA & UK etc and not in Australia,

Registering for GST.

In the past, we usually recommended that Amazon sellers did not register for GST because the Amazon sales were not connected to Australia and they had only minimal expenses subject to GST and the cost of preparing Business Activity Statements (BAS) outweighed any GST refunds.

That has now changed. You will have to be registered for GST but it does have some advantages:

  1. You will be able to claim the GST that you paid on Australian business expenses like telephone, internet, accountants fees, domestic travel to amazon conferences, office supplies, computers etc.
  2. You will  be able to claim the GST paid on Goodle Ads. I predict that Facebook will have to charge GST on their ads soon.
  3. This will result in a GST refund for most Amazon sellers.

Currently Selling in Australia?

However, if you are currently selling in Australia, via your own website or eBay, and you are not currently registered for GST, then you will have to start charging GST on those sales.

More information? To find out more, give us a call on 1300 023 782 or email team@cdrta.com.au.

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Craig is the principal consultant of C&D Restructure and Taxation Advisory and has been working in the industry since 1999. Having established C&D Commercial Partners in 2015 the precursor to the current business.

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Post Author: Craig Dangar

Craig is the principal consultant of C&D Restructure and Taxation Advisory and has been working in the industry since 1999. Having established C&D Commercial Partners in 2015 the precursor to the current business.

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