Overview

Amazon sellers operating on the Australian marketplace need to understand how the Goods and Services Tax (GST) applies to their selling fees. Since July 1, 2017, Australian legislation requires non-resident service providers like Amazon to collect GST on remote services provided to Australian residents who are not registered for GST. This regulation directly impacts the fees sellers pay and requires specific action depending on their GST registration status.

Key Points / What Sellers Need to Know

• GST rate on selling fees — Amazon charges a standard 10% GST on selling fees for Australian-resident sellers who have not provided a valid Australian Business Number (ABN) confirming their GST registration.
• GST-registered sellers can avoid the charge — If you are registered for GST in Australia, you can submit your ABN through Seller Central to prevent Amazon from adding the 10% GST to your fees.
• Non-residents are generally exempt — Sellers who are not Australian residents are typically not subject to this GST collection on their selling fees, though they should consult a tax advisor about any potential Australian GST obligations.
• Refunds are available but slow — Sellers who were incorrectly charged GST can request a refund after submitting a valid ABN, but processing can take up to 90 days.
• No tax invoices issued — Amazon is not required to issue tax invoices under the Australian legislation, but sellers can access fee records through date range reports in Seller Central.

How to Submit Your ABN

Australian sellers who are registered for GST should submit their ABN through Seller Central to avoid the 10% surcharge on selling fees. Navigate to your account settings, then select the VAT/GST registration section. Choose Australia from the country dropdown and enter your Australian Business Number. You will need to accept the tax registration agreement before submitting. Once your ABN is on file, Amazon will stop calculating and collecting GST on your selling fees going forward.

Common Issues and Timing Concerns

Sellers frequently encounter situations where GST continues to appear on their account even after submitting an ABN or updating their address. This typically occurs because Amazon calculates GST at the time an order is placed but only charges it to the seller account when the order ships. As a result, orders placed before you updated your information may still carry the GST charge even if your details are now correct. Sellers who have recently moved outside Australia should carefully review all sections of their account information, including multiple addresses and payment methods that may be associated with their account, to ensure everything reflects their current residency status.