Selling on Amazon Australia – key compliance and tax rules for international sellers
Australia’s booming e-commerce sector presents a valuable opportunity for international businesses like yours looking to expand into a new market. With Amazon Australia rapidly growing in popularity, selling on this platform can give you direct access to Australian consumers. However, before you start, it is crucial to understand the legal, tax and compliance requirements that apply to foreign businesses selling on Amazon Australia.
By Ro Elvinia
Registering for an Australian Business Number (ABN)
One of the first steps to selling on Amazon Australia is registering for an ABN. While not mandatory for all international sellers, having an ABN offers significant advantages. The ABN is an 11-digit identifier issued by the Australian Taxation Office (ATO) – the government agency responsible for administering Australia's tax and superannuation systems – and is widely used in business transactions.
Registering for an ABN can help build trust with Australian customers and suppliers, streamline importation and logistics processes and ensure compliance with tax regulations. If you plan to use Fulfilment by Amazon (FBA) or import goods into Australia, an ABN will allow you to issue tax invoices – something many business buyers actively search for when looking for a Goods and Services Tax (GST) invoice from Amazon. Additionally, an ABN is a requirement for businesses that need to register for GST in Australia.
Understanding your GST obligations as an international seller
If your annual sales in Australia exceed $75,000, you are required to register for GST. Once registered, you must charge 10% GST on taxable sales and remit it to the ATO. However, GST registration may entitle you to claim back GST paid on business expenses, including import costs. This can be a major benefit for international sellers bringing goods into Australia.
There are additional GST rules for sellers of low-value imported goods. Under legislation introduced in 2018, if you sell goods valued at $1,000 or less through an electronic distribution platform (EDP) like Amazon Australia, the platform itself is responsible for collecting and remitting GST. In this case, those sales do not count towards your GST turnover, potentially affecting your requirement to register.
However, the situation changes if you import and store inventory within Australia – for example, in an Amazon fulfilment centre or with a third-party logistics (3PL) provider. In these cases, your sales are considered domestic taxable supplies, and you may need to collect and remit GST yourself if your total turnover exceeds the registration threshold.
Do you need to pay income tax in Australia?
As an international business selling in Australia, you may wonder whether you will need to pay income tax locally. The answer depends on factors such as where your business is based and whether your country has a Double Tax Agreement (DTA) with Australia. These agreements help prevent double taxation and, in many cases, exempt foreign sellers from paying Australian income tax if they do not have a permanent establishment (PE) – such as a physical office or local staff – within the country.
Even if you are not required to pay income tax, you may still need to lodge an annual NIL tax return to maintain your ABN and compliance status. This is a common requirement for international Amazon Australia sellers who operate in Australia without a taxable presence.
Ongoing tax compliance – Business Activity Statements (BAS)
If you are registered for GST, you will also have ongoing compliance obligations in Australia. This includes submitting BAS, which report the GST collected on sales and GST credits on business expenses. Depending on your registration type, you may need to lodge these statements monthly or quarterly.
Keeping accurate financial records and ensuring timely BAS lodgements are critical to avoiding penalties and staying compliant with Australian tax laws. Many international sellers choose to engage professional tax services like ours to manage these obligations efficiently and accurately.
How ABN Australia can assist you
Navigating company registration, GST obligations and tax compliance in Australia can be complex, especially for businesses based overseas. ABN Australia offers expert services to simplify the process and help international sellers establish a compliant presence in the market. From ABN registration and GST setup to BAS lodgements and annual tax filings, our team ensures that your business meets all necessary regulations while allowing you to focus on growth.
Expanding into the Australian market through Amazon Australia is an exciting opportunity, but ensuring compliance from the outset is essential to long-term success. If you are ready to take the next step, contact ABN Australia today for professional guidance and support tailored to international businesses.
Published: 08th Aug 2025 | Last updated: 08th Aug 2025
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