Overview

Australia requires GST to be collected on low-value imported goods (LVIG) — items with a customs value of AUD $1,000 or less that are shipped into the country from overseas. For Amazon sellers fulfilling orders from outside Australia, Amazon handles the calculation, collection, and remittance of the 10% GST on qualifying items. Understanding how this system works is essential for any seller who ships products to Australian customers.

Key Points / What Sellers Need to Know

• Amazon handles GST collection automatically — For items that qualify as LVIG, Amazon calculates the 10% GST at checkout, collects it from the buyer, and remits the tax directly to the Australian Taxation Office (ATO). Sellers do not need to collect or remit this GST themselves.
• Only low-value imports are affected — The LVIG GST applies exclusively to goods with a customs value of AUD $1,000 or less that are shipped from outside Australia to an Australian delivery address. Items valued above this threshold are not covered by this requirement.
• Your ship-from location matters — Amazon determines whether LVIG GST applies based on the ship-from address associated with your seller account settings. If your default shipping location is set outside Australia, GST will be collected on qualifying orders.
• Not all items are taxable — Goods classified as GST-free under Australian law, such as certain health products, food, beverages, and medical items, remain non-taxable regardless of their customs value.
• No additional fees for sellers — Amazon does not charge sellers a fee for calculating, collecting, or remitting LVIG GST on shipments to Australia.

How the GST Calculation Works

When a customer in Australia purchases a qualifying LVIG item, Amazon adds the 10% GST on top of the sale price and any associated charges, including shipping and gift wrap fees. The GST is calculated on a per-item basis, meaning each LVIG item in a multi-item order is assessed individually — the total order value does not determine whether the tax applies. Sellers should set their item prices and delivery charges exclusive of GST, as Amazon adds the tax at checkout. The buyer sees and pays the GST as a separate line item in addition to the price the seller has set.