Australian Amazon sellers: the 10% GST on your Amazon ads

Every Australian seller without a GST registration pays 10% on top of every dollar of Amazon ads and never gets it back. A GST-registered seller claims it back as GST credits on the BAS. Under the A$75,000 threshold, registering just for that means charging 10% GST on every taxable sale to consumers, who cannot claim it: for most sellers of ordinary goods, that costs more than it saves. It pays when you sell GST-free goods, such as most basic food, or sell to GST-registered businesses.

For FBA and FBM sellers based in Australia, from the GST Act, the Australian Taxation Office (ATO) and Amazon's own pages, checked in October 2026.

Work out your figures with our free calculator, Australia preselected

In short

Who bills your ads, and what it adds

• amazon.com.au ads: Amazon Commercial Services Pty Ltd, the "Amazon Contracting Party" when the country is Australia (Amazon Advertising Agreement). ABN Lookup shows it "Registered from 01 May 2017" for GST. Amazon's fees "are exclusive of all sales, use, goods and service and similar taxes" (Seller Central, tax policies), so the 10% GST (GST Act, section 9-70) comes on top.
• amazon.com and the other foreign marketplaces: Amazon bills you from abroad. Amazon's "Tax on Remote Services FAQ" counts advertising fees as remote services, and its row for Australia is plain: tax ID given, fees not taxed; no tax ID, taxed.

Already registered: is your ABN with Amazon?

1. Add it in Seller Central: Settings, Account Info, Tax Information, "Value Added Tax (VAT)/Goods and Services Tax (GST) Registration Numbers". Amazon: "By providing your Australian Business Number (ABN), you confirm that you are GST registered."
2. amazon.com ads then carry no GST. The ATO: for the supplier not to charge you GST, "give them your Australian business number (ABN); state that you are registered for GST." There is no reverse charge to pay either: it applies only to a purchase not made "solely for a creditable purpose" (section 84-5), and your ads are.
3. amazon.com.au ads keep their 10%, which you claim on your BAS with Amazon's tax invoice: Seller Central, Reports, Tax Document Library, "Seller Fee Invoices". You need a tax invoice for any purchase over A$82.50, GST included.

Charged GST on amazon.com ads by mistake? The ATO's answer is to "seek a refund from the supplier". At Amazon: Seller Support, "Selling on Amazon", "My issue is not listed" (Tax on Remote Services FAQ). Amazon needs proof that your registration "was active during the billing period" (Amazon Ads help, "Tax refunds").

Forgot to claim GST on amazon.com.au ads? You have 4 years from the lodgment due date of the BAS in which you could first have claimed it, and "We have no discretion to extend the 4-year credit time limit" (ATO).

Small sellers: should you register just for the 10%?

Under A$75,000 of GST turnover, registering is optional. The ATO: "If you choose to register, generally you must stay registered for at least 12 months." You can then report GST once a year instead of every quarter ("Annual GST reporting").

Nothing comes back for the past: "Prior to the start date of your GST registration, you aren't liable for GST on sales and you're not entitled to GST credits for any purchases" (ATO).

And once registered, you charge 10% on every taxable sale. Your buyers are consumers: they cannot claim it back.

Example. A seller of kitchen gadgets on amazon.com.au, prices unchanged after registering. Each month: A$5,500 of sales, A$2,200 of stock (A$200 of it GST) and A$1,100 of ads (A$100 of it GST).

Registering costs this seller A$200 a month, A$2,400 a year. It recovers A$100 a month on ads and hands over A$500 on sales. The GST on Amazon's own fees narrows the gap, but at this margin does not close it.

When registering pays

• You sell GST-free goods. "You don't include GST in the price if your product or service is GST-free", and "You can still claim credits for the GST included in the price of purchases you use to make your GST-free sales" (ATO). Most basic food is GST-free: a seller of it charges nothing more and recovers the full 10% on ads.
• You sell to GST-registered businesses. They claim the 10% you charge, so it costs them nothing, and you recover the 10% on your ads. In the calculator, choose "Seller to businesses (B2B)".
• You export. Goods exported within 60 days of payment or invoice are GST-free (ATO, "GST-free sales"), and they still count in your GST turnover.

Frequently asked questions

I import my stock from overseas. Does Amazon's GST on low value imports change this?

No. Amazon collects GST only on low value goods "dispatched from outside Australia to an Australian address". Stock already in Australia is your own GST matter: "You will have a GST obligation for the goods sold because the goods are located in Australia" (ATO, about non-residents warehousing in Australia).

Do I have to register once I reach A$75,000?

Yes, within 21 days: "Once you are required to register for GST, you need to do so within 21 days" (ATO).

How do I get a binding answer for my business?

Ask the ATO for a private ruling: it "legally binds the ATO if it applies to you and you rely on it". The ATO aims to answer within 28 days of receiving all the information.

Check your figures

Use the free Amazon Ads tax calculator, Australia preselected, then take the figure to your accountant or BAS agent.

Spending less on clicks that never sell cuts the 10% too: see how negative keywords work and what happens to your ads when you run out of stock. Authors have their own case: Australian KDP authors and the 10% GST.

Sources

• A New Tax System (Goods and Services Tax) Act 1999, sections 9-70, 23-10 and 84-5, Federal Register of Legislation
• Registering for GST, ATO
• When you can claim a GST credit and Time limits on GST credits and refunds, ATO
• Other changes relating to indirect taxes (no credits before registration), ATO
• GST-free sales, ATO
• Australian business importing goods and services, ATO
• How Australian GST works, ATO
• Annual GST reporting, ATO
• Private rulings, ATO
• Amazon Commercial Services Pty Ltd (GST registration), ABN Lookup
• Amazon Advertising Agreement ("Amazon Contracting Party"), Amazon Ads
• Tax refunds, Amazon Ads help
• Tax on Remote Services FAQ, Tax policies, VAT/GST Registration Number Agreement and Low-value imports FAQ, Amazon Seller Central

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