This article applies to selling in: Australia

Australia Goods and Services Tax on Low-Value Imports Frequently Asked Questions on Australia's Low-Value Imports GST

What is Australia’s Low-Value Imported Goods GST law?

In 2018, Australia implemented legislation to impose Goods and Services Tax (GST) on imported goods that are classified as taxable for Australian GST purposes and have a customs value of $1,000 Australian Dollars (AUD) or less (Low Value Imported Goods or LVIG). Based on this, Amazon is required to calculate, collect and remit 10% GST on LVIG sold by sellers on Amazon.com and dispatched from outside Australia to an Australian address.

How does Australia’s Low-Value Imported Goods GST affect my Selling on Amazon account?

If you sell an item that qualifies as LVIG, Amazon will automatically calculate, collect and remit GST at the rate of 10%. The GST will be added to the price and delivery charges that you have set in Seller Central for items that are classified as LVIG.

Note: This law will not impact items that have a customs value greater than AUD 1,000.

Am I responsible for collecting and remitting Low-Value Imported Goods GST to the Australian Taxation Office (ATO)?

No, when dispatching LVIG from outside Australia to an address in Australia, Amazon will calculate, collect and remit the LVIG GST directly to the ATO.

How do I ensure that the items I sell on Amazon.com reach the customer and clear customs in Australia?

Amazon-fulfilled packages already have the necessary information to clear Australia customs, and you do not have to take any additional steps.

Seller-fulfilled packages will require additional information in order to pass customs in Australia. For further details, please review the Dispatch to Australia: required customs documentation for seller-fulfilled items page to review the necessary information required for your package to clear customs in Australia.

How do I identify which orders are subject to Low-Value Imported Goods GST?

LVIG GST is payable on imported goods which have a customs value of AUD 1,000 or less and that are dispatched from outside Australia to an Australian address. On the Order Details page, under the Tax Collection Model section, each order that is subject to LVIG GST will be identified as LowValueGoods, and the Collection Responsible Party will be Amazon.

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 transaction reports for a specific date range. Additionally, inside the monthly Sales Tax Reports, you can find monthly transactions that are subject to LVIG GST. The Tax Collection Model for LVG dispatched to Australia will be "LowValueGoods".

Please note: New Zealand enacted similar GST legislation on 1 December 2019. As a result, the Tax Collection Model for LVG dispatched to New Zealand will also show as "LowValueGoods", and is subject to GST at the rate of 15%, where applicable.

How does Amazon determine that I am dispatching from outside of Australia?

The GST calculation is dependent on the "Dispatch-from Location" associated with your Seller Central Account. Amazon determines your Dispatch-from Location using the Delivery Addresses set on Delivery Settings. Sellers who dispatch to Australian customers from both within and outside of Australia can review the Sellers with warehouse inside and outside of Australia page to understand their options. Otherwise, your default Dispatch-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 from outside Australia?

You must provide Amazon with accurate information on Seller Central. Failure to do so may be a breach of law and result in Amazon incorrectly calculating the GST payable. Misrepresenting your Dispatch-from Location may also have other consequences and result in action being taken by Amazon on your Seller Account, including termination of your Seller Account. Items dispatched 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 customer does not receive their order, you will not be paid for the sale.

How will Amazon calculate the 10% GST?

When dispatching LVIG items, the 10% GST will be displayed in your order details. GST applies on the item and any additional charges, including delivery and gift wrap charges. GST applies to each LVIG item in an order, regardless of the total value of all items in an order. Amazon will calculate the GST at checkout, so the sale price that you set for the item and delivery charges on your account is exclusive of GST. The customer is charged the 10% GST in addition to the sale price and delivery charges you set.

What is considered a taxable item?

Taxable items are goods that are ordinarily subject to GST in Australia. Items classified as GST-free, such as certain health, food, beverages and medical items, will continue to be non-taxable regardless of customs value.

Will I be charged a sales tax collection fee for items dispatched to Australia?

No, Amazon will not charge sellers a fee for calculating, collecting and remitting GST for items dispatched to Australia.

Note: Sellers’ existing tax calculation settings and applicable fees may still apply for non-LVIG and non-Marketplace Tax Collection states or jurisdictions supported by the Tax Calculation Service and identified in your Tax settings.

I am a business and am GST registered. I have provided Amazon with my Australian Business Number (ABN). How will Low-Value Imported Goods GST affect 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 LVIG sold on Amazon.com. You remain responsible for collecting and remitting GST on goods that you sell on Amazon.com that you dispatch from within Australia if you meet the GST registration threshold.

A customer claims he/she is a business and is looking for GST exemption. What do I do if a customer contacts me for a tax refund on orders that I have fulfilled?

If the goods sold are LVIG, ask the customer to contact Amazon. Amazon will handle all customer enquiries related to LVIG GST.

Note: For seller-fulfilled orders, all other customer concerns will continue to be managed by the seller.

I sold an item for more than AUD 1,000 that dispatched from outside Australia. 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 LVIG GST because its customs value is greater than AUD 1,000. As a result, 10% GST for LVIG will not be assessed, collected or remitted by Amazon.

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 tax advice to determine the amounts payable, ensure that you provide the right information and ensure that you provide sufficient funds to the carrier to cover these amounts. Amazon will not calculate, collect or remit any GST payable for these items.

What happens when the customer returns an item that dispatched to Australia?

Where the buyer is entitled to a refund, you will be expected to provide a full refund (subject to any applicable delivery charges payable by the buyer), excluding the GST that was withheld by Amazon. Amazon will refund the GST to the customer.

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