What is GST on low value imported goods?
From 1 July 2018, Australia will implement laws to levy Goods and Services Tax (GST) on imported goods with a customs value of $1,000 or less (low value imported goods, or LVIGs). Effective immediately, Amazon is required to calculate, collect and remit 10% GST on low-value imported goods sold by third-party (3P) sellers on amazon.com.au and shipped from outside Australia to customers in Australia.
How does Australia's GST on low-value imported goods affect my Selling on Amazon account?
From 1 July 2018, we will charge you 10% GST on low value imported goods sold on amazon.com.au. To cover the GST due, Amazon will deduct 1/11 of the product price and delivery fee set in Seller Central for all products you ship from outside Australia. To ensure that we can determine whether you need to collect GST on the goods you sell, and to simplify the process of generating customs documentation for orders shipped from outside Australia that are subject to GST on low-value imported goods, you need to: (1) ensure that the prices and shipping costs you set are inclusive of GST; and (2) update your shipping address in Seller Central.
Am I responsible for collecting and remitting GST on low value imported goods to Australia?
No, Amazon will be responsible for calculating, collecting and remitting GST on low value imported goods directly to the ATO.
How do I determine which orders are subject to GST on low value imported goods?
Goods sold on amazon.com.au by third party (3P) sellers are subject to low value imported goods GST if they are shipped from outside Australia to customers in Australia and the customs value of the imported goods does not exceed $1,000. Each order subject to GST on low value imported goods will be marked as "Australian Low Value Imports" under the "Taxation Model" section on the order details page.
Where can I find transactions that are subject to GST on low value imported goods in my monthly report?
The Date Range Reports page allows you to generate separate transaction reports for specific date ranges. Additionally, in the Monthly Sales Tax Fee Report, you can find monthly transactions that were subject to GST on low-value imported goods.
How does Amazon calculate 10% GST?
For low value imported goods sold on Amazon.com.au and shipped from outside Australia, Amazon will deduct 1/11 of the product price and fulfillment fees set by you in Seller Central and remit it to the Australian Taxation Office (ATO) to pay the GST on the low value imported goods.
What are taxable goods?
Taxable goods generally refer to goods that are subject to GST in Australia. Goods that are exempt from GST (such as certain health products, food, beverages and medical goods) remain non-taxable, regardless of the customs value.
How will GST on low-value imported goods affect sales expenses?
Amazon.com.au selling fees will be calculated based on the product price you set in Seller Central, which will include GST.
How can I ensure my low value imported goods parcel can clear customs and be delivered to an Australian address? When delivering low value imported goods to Australia, what additional information should I include on my invoice or package?
If you are shipping from outside Australia, the customs documentation you provide with your order must include details of the items you are sending and the GST that is being collected on each item in the order and the Australian Business Number of the company collecting the GST (Amazon Commercial Services Pty Ltd). After you confirm an order in Seller Central, you can find the information you need in order reports and through Amazon Marketplace Web Service.
Where can I find Amazon's Business Number (Australian Business Number) so I can include this information on my import documentation?
Amazon Commercial Services Pty Ltd's Australian business number is 30 616 935 623.
I am a business and am GST registered. I have provided Amazon with my Australian Business Number (ABN). If I am a business, how will GST on low-value imported goods affect my selling experience?
Registering for an ABN does not affect Amazon's requirement to collect and remit GST on low value imported goods sold on amazon.com.au. If you meet the minimum requirements for GST registration, you will still need to collect and remit GST on goods you sell on amazon.com.au that you ship from Australia.
The buyers claimed that they were businesses and wanted to get GST exemption. What should I do if a buyer contacts me and asks me to refund taxes on an order I shipped?
If the products being sold are low value imported goods, please have the buyer contact us as Amazon handles all customer inquiries related to GST exemption on low value imported goods.
Note: For seller-fulfilled orders, all other buyer questions remain the responsibility of the seller.
I am shipping multiple items, each valued at less than $1,000, to addresses in Australia. The total value of the combined items exceeds the $1,000 limit. How will Amazon calculate GST on these products?
When an order is received, Amazon cannot determine whether the items need to be shipped individually or in one shipment. Therefore, if your shipping address is outside of Australia, Amazon will treat individual items in your order with a value of no more than $1,000 as low-value imported goods and calculate and collect 10% GST on those items and related delivery charges. The customs documentation you provide with your order must include details of the products you are sending and the GST being collected on each item in the order and the Australian Business Number of the company collecting the GST (Amazon Commercial Services Pty Ltd).
I am shipping multiple items, each valued at less than $1,000, to addresses in Australia. The total value of the combined items does not exceed the $1,000 cap. How will Amazon calculate GST on all these items?
Since the value of the goods does not exceed $1,000, when your delivery address is not within Australia, Amazon will calculate and collect 10% GST on each product and related delivery fees.
I sold an item valued at over $1,000 and the shipping address was overseas. What do I need to do to ensure my shipment is delivered to an address in Australia?
This item is not subject to GST on low value imports as its customs value is over $1,000, but GST, duties and other import processing charges may apply. To clear your merchandise through customs you will need to contact your carrier or obtain your own advice to determine the amount payable, to ensure the information you provide is correct and that the funds you provide to the carrier are sufficient to cover these charges. Amazon does not assess, collect or remit any GST payable.
What if the buyer returns the product?
If the buyer is entitled to a refund, you will provide a full refund including all applicable shipping charges paid by the buyer, excluding any GST withheld by Amazon. Amazon will refund the GST to the buyer.
One of my warehouses is outside Australia and the other is within Australia. How will Amazon calculate GST on low value imported items if I ship from multiple locations?
Sellers shipping from within and outside of Australia to customers in Australia will need to take additional steps to set up a shipping address using new functionality that will be released in the coming weeks . You will receive separate instructions shortly on how to manage multiple shipping addresses. While you can currently add multiple addresses to your profile in preparation for this new feature, only one default shipping address can be selected, and the others will remain inactive for now.
How does Amazon determine my shipping address and that I am shipping from outside Australia?
Amazon uses the shipping address set in your shipping settings to determine your shipping address. Sellers shipping from within and outside of Australia to customers in Australia will need to take additional steps to set up a shipping address using new functionality that will be released in the coming weeks. Otherwise, your default shipping address will be used to determine whether GST is applicable.
What happens if my shipping address is set to Australia but I ship from outside of Australia?
You must provide Amazon with accurate information about the address from which your orders are shipped. Failure to do so may result in you violating the law and causing Amazon to be unable to correctly calculate the GST due. Failure to provide a correct shipping address may also have other consequences and result in Amazon taking action against your account, including closing your seller account . Goods shipped from outside Australia that do not include the required customs documentation and GST has not been paid may be detained by customs and may be confiscated, cause delays, or be subject to fines or other consequences. Additionally, if the buyer does not receive the ordered item, you will not be paid.
