Amazon FBA has unique tax complexity for Australian sellers. Here's how to handle GST, fees, and inventory correctly.
Amazon charges Australian FBA sellers a range of fees — referral fees, fulfilment fees, storage fees, and more. If you're registered for GST, the good news is that many of these fees include GST that you can claim back as input tax credits on your BAS. However, you need to check each fee line carefully because Amazon's invoicing can be complex, and not all charges will include GST.
If you're not yet registered for GST, those fees are simply a cost of doing business that you can deduct at tax time. Either way, tracking each fee category separately is important for accurate accounting.
This catches many FBA sellers off guard: the stock you buy to sell through Amazon isn't immediately deductible. Under Australian tax rules, inventory is an asset on your balance sheet. It only becomes a deductible expense (as cost of goods sold, or COGS) when the item actually sells. This matters significantly for FBA sellers who might send large shipments of stock to Amazon's warehouse.
At the end of the financial year, any unsold inventory must be valued and reported. The ATO accepts several valuation methods — cost price, market selling value, or replacement value — and you should use whichever gives the most accurate picture. Learn more about tracking inventory costs in our reseller tax guide.
FBA sellers have a wide range of deductible expenses beyond COGS:
When Amazon reimburses you for lost or damaged inventory, that reimbursement is income. It must be declared. Similarly, if Amazon refunds a customer and then reimburses you, the accounting treatment differs from a standard sale. Keeping track of reimbursements versus normal sales is an important part of FBA bookkeeping.
The ATO has expanded its data matching program to cover online marketplaces including Amazon. They receive transaction data from payment processors and platforms, which they compare against your declared income. If there's a discrepancy, you'll likely receive a letter — or worse, trigger a formal review. Proper record keeping from day one is your best protection. Our guide to reseller tax in Australia covers ATO compliance in depth.
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