GST treatment for Amazon.com.au sales and fees

 Author: Frank7(Initiate)Initiate

21 Nov 2025

Hi JayATO,

Thank you for your response.

However, I would like to highlight that the explanation provided may be incomplete and potentially misleading, because it does not distinguish between the two very different EDP regimes under the GST legislation:

1. LVIG EDP rules

These rules apply only where goods are shipped from overseas into Australia, generally by overseas sellers, and only where the customs value is ≤ $1,000.

In these circumstances, Amazon AU may be treated as the supplier and required to collect/remit GST.

2.Marketplace EDP rules

These rules relate to electronic distribution platforms for domestic supplies, and do not automatically apply to all goods sold by Australian-based sellers.

For Australian-based sellers who are registered for GST, carry on an enterprise in Australia, and ship goods from within Australia (local inventory or FBA AU), the GST Act does not automatically shift GST liability to the EDP operator unless the platform has expressly agreed to be treated as the supplier for GST purposes (as contemplated in LCR 2018/2 but not generally adopted by most marketplaces for domestic sellers).

Therefore, for many Australian-based sellers, GST remains the seller’s responsibility, and their sales may not be GST-free (N-T) in their BAS.

3.Why the distinction matters

Your reply suggests that all Amazon AU marketplace sales should be reported as GST-free (N-T) because Amazon “has already handled the GST obligations”.

This is accurate only for scenarios that fall under LVIG EDP.

But for:

• Australian-based GST-registered entities,
• with domestic inventory (including FBA AU),
• making taxable supplies of goods wholly within Australia,

the seller may still be responsible for the GST on their sales.

This is also consistent with Amazon’s own documentation, which states that Australian-based sellers shipping from within Australia remain responsible for their own GST obligations.

4. Request for clarification

To avoid confusion for other Australian sellers on this forum, could you please clarify:

✔ In which scenarios does Amazon AU actually assume GST liability for marketplace sales?

✔ Under which EDP rules does this occur (LVIG vs Marketplace EDP)?

✔ Does Amazon AU in fact elect to be treated as the supplier for GST purposes for all domestic marketplace sales from Australian-based sellers?

If not, then Australian-based sellers may incorrectly believe their supplies are GST-free (N-T) when they are not.

Thank you for reviewing this distinction.

It is an important compliance issue for thousands of Australian GST-registered businesses.

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