Australian Amazon Sellers - 10% GST on Amazon Selling Fees
From 1 July 2017, Amazon will begin charging 10% GST on “Selling on Amazon” fees for Australian-based sellers, unless you are registered for GST with the Australian Taxation Office (ATO) and have provided your ABN.
What This Means for You
If you're an Australian seller on Amazon and you don’t both:
Register for GST with the ATO, and
Provide your ABN to Amazon,
Then you will be charged an extra 10% on Amazon’s 15% selling commission, making the effective rate 16.5% of your sales.
Simply providing an ABN isn’t enough, Amazon will use its API to confirm whether your ABN is registered for GST.
What About FBA Fees?
At this stage, the GST appears only to apply to Amazon's commission fees for services provided in Australia, not to FBA fees, which are for services rendered overseas (like in the US or UK).
Why You Should Register for GST (Even if You Didn't Before)
Previously, we didn’t always recommend GST registration for Amazon sellers—most revenue was offshore and expenses minimal. But now things have changed. By registering:
You avoid the extra 10% GST charge on Amazon's fees
You can claim back GST on Australian business expenses like:
Internet and phone services
Accountant fees
Travel for business (e.g., Amazon conferences)
Office supplies and equipment
Google Ads and soon likely Facebook Ads
This could result in regular GST refunds for many Amazon sellers.
Already Selling in Australia?
If you're selling via your own website or on eBay and aren’t registered for GST, you will now need to start charging GST on your Australian sales.
👉 Check your GST registration status here
Seller Central Update
As of 21 June 2017:You currently cannot add your ABN in Seller Central because Australia isn’t listed in the dropdown box. Amazon has stated that ABN entry will be available from 26 June 2017.
Free GST Registration for Dolman Bateman Clients
If you're a Dolman Bateman client, we’ll register your Amazon business for GST for free.📧 Email Andrew at andrew@dolmanbateman.com.au to get started.
Not a client yet? Now is a perfect time to learn why we’re the go-to accountants for Amazon sellers.We sell on Amazon ourselves, we get what you’re dealing with, every day.
📅 below and let’s talk about how we can help grow your Amazon business.
Disclaimer: The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.
