Here, we’ll tell you about the Australian GST rules for Amazon sellers, and we’ll show you how to meet them.
Most products and services that are sold in Australia requires an extra 10% tax on top of what they already are sold for. This is true for almost all items except for those from the food, housing, and health care industries. Businesses pay this tax, which is called the Goods and Services Tax (GST) and turn it over to the government. The Australian Taxation Office (ATO) is in charge of the GST. It will then be used to provide public services and infrastructure in different parts of the country that aren’t in the same place.
It’s important to know that the GST also applies to goods that come from outside the country. You will likely have to pay this tax if you sell on Amazon in Australia.
GST regulations for Amazon products sold in Australia
The 10 percent GST is charged on imported goods, even if they were shipped to Australia through Amazon, which includes things that were bought there. Check to see if your low value imported goods (LVIG) have a customs value of less than $1000. if the customs value of a piece of goods is more than AU$1,000, the tax will be taken care of right at the border.
Based on this law, Amazon must figure out, collect, and pay the GST for every LVIG sold on the platform. The GST will be automatically added to any order that is sent to an Australian address when the customer places it. It will then be shown on each taxable item and added to the total cost of the items you bought.
The effect of GST on a seller's account in Australia
If you’re an Amazon seller, it’s critical to become familiar with the Australian GST rules so you know what to expect when selling goods or services to Australian clients. It’s preferable if you understand how to calculate GST on LVIGs so that you and your clients aren’t caught off guard when conducting business. Keep in mind, however, that some terms and restrictions apply to both Fulfilled by Amazon and Merchant Fulfilled Network vendors, while others apply to either.
Finally, it’s important to be aware of and comprehend the tax regulations by Amazon Australia, such as the GST requirements. If it helps, hire an Amazon seller accountant in Australia, such as the ecommerce accountants at Fullstack.
How the Amazon seller tax payment process works
Items in your inventory that are LVIGs will be automatically added together to figure out how much they cost. When a customer buys them, the tax will then be added to the total cost of the item. Once Amazon does this, the ATO will get the money. When all is said and done, the government will use the money to help with projects and public services in the country.
Amazon sellers also need to make sure that they’re giving the right address for shipping. This is because Amazon will close your Seller Account if you give them false information about where your products are going to be sold.
You now understand more about the Australian GST for Amazon sellers. Consider all of the relevant facts provided above to ensure that you are appropriately meeting your eCommerce tax obligations while selling goods or services to clients in Australia.
Are you an Amazon seller interested in learning more about the Australian GST and how it applies to your ecommerce business? You’ve come to the correct spot, Fullstack provides eCommerce accountant services that assist entrepreneurs in lowering their tax liability and increasing their profit. If you require the skills and understanding of an eCommerce tax accountant, reach out.
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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech companies, crypto and entrepreneurs.