What is Low Value Imported Goods GST?
From July 1, 2018 Australia will implement legislation to impose Goods and Services Tax (GST) on imported goods which have a customs value of $1,000 or less (Low Value Imported Goods or LVIGs). From this date, Amazon is required to calculate, collect and remit 10% GST on LVIG sold on amazon.com.au by third-party (3P) sellers that are shipped from outside Australia to customers in Australia.
How does Australia’s Low Value Imported Goods GST affect my Selling on Amazon account?
From July 1, 2018, a 10% GST will apply to sales of LVIG that you make on amazon.com.au. To cover the GST payable, Amazon will deduct 1/11th from the price and delivery costs you set in Seller Central for any goods you tell us ship from outside Australia. To ensure that we can determine if we need to collect GST on your sales, and to streamline the process for you to generate the required customs documentation for orders which you ship from outside Australia and that are subject to LVIG GST, you will need to: (1) make sure that you have set your prices and delivery costs to include the GST and (2) update your ship-from location in Seller Central.
Am I responsible for collecting and remitting Low Value Imported Goods GST in to Australia?
No, when shipping low value goods from overseas to customers in Australia, Amazon will calculate, collect and remit the LVIG GST directly to the Australian Tax Office.
Will it be different if I use FBA to sell in Australia?
You (and not Amazon) are responsible for your own GST obligations when selling to customers in Australia using the FBA service. If your turnover is greater than $75,000 AU per annum you will be required to register and account for GST on sales of taxable products. If you are registered for GST in Australia and you import your products into Australia you may be entitled to claim any GST that you incur.
How do I identify what orders are subject to Low Value Imported Goods GST?
LVIG GST is payable on imported goods which have a customs value of $1,000 or less sold on amazon.com.au by third-party (3P) sellers that are shipped from outside Australia to customers in Australia. In the Order Details page under Tax Collection Model section, each order that is subject to LVIG GST will be identified as LowValueGoods_Australia
Where do I find which transactions are subject to Low Value Imported Goods GST on my monthly reports?
You can use the Date Range Reports page to generate individual transactions reports for a specific date range. Additionally, inside the monthly Sales Tax Reports, you can find monthly transactions that are subject to LVIG GST.
How will Amazon calculate the 10% GST?
For LVIG items sold on Amazon.com.au and shipped from outside Australia, 1/11th of the sales price and delivery costs you set in Seller Central will be deducted by Amazon and remitted to the Australian Tax Office (ATO) to cover the LVIG GST.
What is considered a taxable item?
Taxable items are goods which are ordinarily subject to GST in Australia. Items which are classified as GST-free (such as certain health, food, beverages and medical items) will continue to be non-taxable regardless of customs value.
How will Low Value Imported Goods GST impact Selling Fees?
The Amazon.com.au Selling Fees will be calculated on the price you set for your item in Seller Central, the price will be inclusive of GST.
How do I ensure that my LVIG package clears customs and is delivered to an Australian address? What additional information do I need to include on my invoice or package when shipping LVIG into Australia?
If you are shipping from outside of Australia, the customs documentation which you provide with the order must include the details of the products you are sending, as well as the GST collected for each item within the order and the ABN of the company collecting the GST (Amazon Commercial Services Pty Ltd). You can find the required information when confirming the order on Seller Central, in the order reports and through Marketplace Web Services.
Where can I find Amazon’s Business Number (ABN) in order to include this information on my import documents?
Amazon Commercial Services Pty Ltd’s ABN is 30 616 935 623.
I am a Business and am GST registered. I have provided Amazon my Australian Business Number (ABN). How will Low Value Imported Goods GST impact my selling experience if I am a Business?
Having an ABN on file does not change the requirement for Amazon to collect and remit GST on low value imported goods sold on amazon.com.au. You remain responsible for collecting and remitting GST on goods you sell on amazon.com.au that you ship from within Australia if you meet the GST registration threshold.
A customer claims they are a Business and are looking to be GST exempt? What do I do if a customer contacts me for a tax refund on orders I fulfilled?
If the goods sold are LVIG, ask the customer to contact us, as Amazon will handle all customer inquiries related to low value imported goods GST.
I am shipping multiple items that are individually valued below the $1,000 to an Australian address. The total amount of the combined items is above the $1,000 threshold. How will Amazon calculate GST on these items?
At the time of order, Amazon cannot determine whether items will be shipped separately or together as one consignment. Therefore, if your Ship-From location is outside of Australia, Amazon will treat individual items less than $1,000 in the order as LVIG and calculate and collect 10% GST on these and on the associated delivery costs. The customs documentation which you provide with the order must include the details of the products you are sending, as well as the GST collected for each item within the order, and ABN of the company collecting the GST (Amazon Commercial Services Pty Ltd).
I am shipping multiple items that are individually valued below the $1,000 to an Australian address. The total amount of the combined items is below the $1,000 threshold. How will Amazon calculate GST on all these items?
Since the items are below $1,000, if your ship from location is outside of Australia, Amazon will calculate and collect 10% GST on every item and on the associated delivery costs.
I sold an item that is above $1,000 that will be shipped from overseas. What do I need to do to make sure that my shipment is delivered to an Australian address?
This item would not be subject to the low value imported goods GST because its customs value is greater than $1,000, however GST, customs duty and other import processing charges may apply. To enable the item to clear customs you will need to contact your carrier or obtain your own advice to determine the amounts payable, to ensure that you provide the right information, and ensure that you provide sufficient funds to the carrier to cover these amounts. Any GST payable will not be assessed, collected or remitted by Amazon.
What happens when the buyer returns my item?
Where the buyer is entitled to a refund, you will be expected to provide a full refund (subject to any applicable shipping charges payable by the buyer), excluding the GST that was withheld by Amazon. Amazon will refund the GST to the buyer.
One of my warehouses is located outside of Australia and another warehouse is in Australia How will Amazon calculate Low Value Imported Goods GST if I have multiple ship from locations?
Sellers who ship to Australian customers from both within and outside of Australia will need to take additional steps to set up their Ship-From Location using new functionality that will be released in the following weeks. You will receive separate instructions on how to manage more than one Ship-from location shortly. While you can currently add multiple addresses to your profile in preparation for this new feature, only one can be selected as Default Shipping Address and the rest of the addresses will currently remain inactive.
How does Amazon determine my ship from location and that I am shipping from outside of Australia?
Amazon determines your Ship-From Location using the Shipping Addresses set on Shipping Settings. Sellers who ship to Australian customers from both within and outside of Australia will need to take additional steps to set up their Ship-From Location using new functionality that will be released in the following weeks. Otherwise, your default Ship-From Location will be used to determine whether GST is payable.
What happens if my ship from location is set to Australia but I am shipping an item outside the Australia?
You must provide Amazon with accurate information about where your order ships from. Failure to do so may be a breach of law and result in Amazon incorrectly calculating the GST payable. Mis-representing your Ship-From location may also have other consequences and result in action being taken by Amazon on your account, including termination of your seller account. Items shipped from outside of Australia that do not include the required customs documentation and that have not had GST collected may be held up at customs and may be seized, incur delays, or be subject to fines or other consequences. In addition, if the buyer does not receive their order, you will not be paid for the sale.