As of 1 July 2018, the Australian government implemented the Low Value Imports GST scheme.
In simple terms, for Amazon sellers it means that Goods and Services Tax (GST) now applies to Low Value Imported Goods (LVIG) that have a customs value of $1,000 Australian dollars or less.

The Australian government requires ecommerce sellers to collect Low Value Imported Goods GST, so for Amazon sellers that generally means one of two scenarios:

  1. An Amazon.com (or any market such as .co.uk) sale that is shipped to Australia. Find out more here.
  2. An Amazon.com.au sale that is shipped into Australia from outside Australia. You can find out more here.

In this article we’ll show you how these sales appear in your A2X Amazon financials. Please discuss accounting for these transactions with your accountant or tax adviser.

Scenario 1: Non-AU sellers shipping to AU

Amazon sales made via any Amazon marketplace except Amazon Australia (Amazon.com.au), that is shipped to Australia

Amazon has stated:

“Australia implemented legislation to impose Goods and Services Tax (GST) on Low Value Imported Goods (LVIG) that have a customs value of $1,000 Australian Dollars (AUD) or less. Based on this, Amazon is required to calculate, collect and remit 10% GST on LVIG sold by sellers on Amazon.com and shipped from outside Australia to an Australian address.”

This will be seen in your Amazon settlements in the following way:


Then you will see those tax amounts withheld:

These transactions will be applied to MFN or FBA orders where the product is shipped from outside Australia into Australia.

Scenario 2: AU Sellers shipping into AU

Amazon.com.au sales that are shipped into Australia from outside of Australia. 

Amazon has stated:

“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.”


This will be seen in your Amazon settlements in the following way:


Then you will see the tax amount withheld:

These transactions will be applied to MFN orders where the product is shipped from outside Australia into Australia.


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