Australia marketplaces split on e-commerce GST

Latest Australian news

May 11, 2018

Australia is to impose 10% Goods and Provider Tax on non-resident sellers and agents of Australian hotel accommodation. The suppliers will just be responsible …

April 26, 2018

From 1 July 2018, 10% GST is due on all items sold by foreign online merchants to Australian consumers. Once the non-resident e-merchant sales …

From 1 July 2018, (a href=”″)Australia withdrew the AU$ 1,000 GST-free import threshold on goods imported by customers. This efficiently ended the tax aid foreign online merchants had when offering to Australian consumers compared to domestic sellers obliged to impose the 10% usage tax. Non-resident sellers are now responsible to GST register, and charge tax on any B2C sales from abroad, if they pass the regional selling limit of AU$ 75,000 per year.

The significant two foreign markets, eBay and Amazon, have actually tackled this brand-new requirement in 2 different ways to assist guarantee all sales on their platforms are compliant with the new rules.

eBay opts for GST split payments

In reaction, eBay is to collect GST on sales made by foreign merchants on its platform. This will be done by eBay instantly including 10% tax at the ‘checkout’. eBay will then remit this directly to the Australian Tax Office (ATO). This implies merchants will not need to separately GST register in Australia.

Amazon releases with geo-blocking

By contrast, Amazon has released an Australian market,, in December 2017. This includes an in-country satisfaction. This means foreign e-tailers can first import the goods for local storage, and then make domestic sales at the routine 10% GST. Amazon has actually geo-blocked Australian internet users from its foreign marketplaces.

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