Accountant for Amazon Sellers: An Australian Tax Guide

Reviewed by Reuben Bergola, CA, Managing Partner, New Wave Accounting. Last reviewed 27 October 2026.

Selling on Amazon in Australia is taxed like any other business: your profit is business income, and if you are registered for GST you account for GST on your Australian sales and claim credits on Amazon’s fees. The hard part is the bookkeeping. Amazon pays you a net amount every 14 days after fees, refunds and reserves, so deposits never match sales, and a good accountant for Amazon sellers starts by unpacking those settlements properly.

For the bigger picture, see our complete guide to e-commerce accounting or our ecommerce accountant hub.

How Amazon settlements and payouts work

Amazon does not pay you per order. It collects the customer’s money, holds it in your seller account and pays out the balance at the end of each settlement period. Amazon Australia’s Seller Central finance pages put the payout period at 14 days.

Each settlement (Amazon’s statement for that period) mixes together:

• Sales, including delivery charges and the GST the customer paid
• Referral fees, a percentage Amazon takes on each sale
• FBA fees for picking, packing and delivering from Amazon’s warehouses
• Storage fees, the monthly plan fee and any advertising deducted from your balance
• Refunds and the fees reversed on them
• Reimbursements for FBA stock Amazon lost or damaged
• Deferred amounts and reserves, money Amazon is holding back for now

Amazon’s balance summary splits your balance into available funds, deferred amounts (released later) and an account-level reserve held against chargebacks or disputes.

Settlement periods also ignore calendar months. One period can start in March and end in April. Record each deposit as “Amazon sales” and your monthly income, fees and GST will all be wrong.

Recording Amazon fees and their GST treatment

The fix is to “gross up” each settlement: record full sales as income and each fee as a separate expense, not just the net deposit. Most accountants use a clearing account, a holding account in Xero where the settlement is recorded in full and the bank deposit is matched against it, leaving a zero balance once everything ties out.

Amazon Australia quotes its fees exclusive of GST. Its pricing page says fees do not include taxes such as GST, and its tax policy says you pay any tax imposed on them. If you are registered for GST and hold a valid tax invoice, that GST is generally claimable as a GST credit (an amount you claim back on your BAS).

Two points trip people up:

1. Amazon does not collect GST for you on Australian stock. Amazon’s Australian help pages say you are responsible for GST on your sales. The ATO makes marketplaces responsible for GST on low value imported goods sold by overseas merchants, but where goods come from an Australian warehouse, the merchant stays responsible.
2. Advertising invoices differ. Amazon Ads says it charges GST on sponsored ads in some cases, such as where no valid GST registration number has been provided. Claim only what the invoice shows.

Download your Seller Fee Tax Invoices each month from the Tax Document Library in Seller Central. Our GST guide for online sellers covers BAS reporting.

FBA stock in Amazon’s warehouses is still your trading stock

Sending stock to an Amazon fulfilment centre does not take it off your books. Under the ATO’s ruling IT 2670, goods are your “trading stock on hand” if you have the power to dispose of them, even when an agent physically holds them.

At the end of each income year (30 June for most businesses), value all stock you own, wherever it sits:

• In Amazon fulfilment centres, in Australia and overseas
• In transit to Amazon
• In your own warehouse or with a third-party logistics provider

The ATO lets you value each item at cost (including freight, insurance and duty to get it to its current location), market selling value or replacement value, and you can choose different methods for different items each year. Small businesses (aggregated turnover under $10 million) can skip a formal stocktake under the simplified trading stock rules if they reasonably estimate stock value changed by $5,000 or less. Most sellers at $500K plus will move more than that, so plan a proper count using Amazon’s inventory reports. For COGS (cost of goods sold, the cost of stock you actually sold) and landed cost, see our guide to inventory accounting and landed cost.

Selling on overseas Amazon marketplaces

Expanding to Amazon.com, Amazon.co.uk or other stores adds three layers.

Australian GST. Goods you ship from Australia directly to an overseas customer are generally GST-free if exported within 60 days of payment or invoice (whichever comes first), with evidence of export. If stock goes to an overseas Amazon warehouse and sells from there, those goods are outside Australia and generally not subject to Australian GST. Export sales connected with Australia still count towards the $75,000 GST registration threshold.

Foreign sales tax and VAT. Other countries have their own sales tax, VAT and registration rules. Some require Amazon to collect certain taxes while leaving other obligations with you, particularly once you hold stock there. The rules vary by country (and in the US, by state) and change often, so get specialist advice for each market before sending stock.

Currency and payouts. Overseas settlements are in local currency. For Australian tax, foreign currency amounts must be translated into Australian dollars, generally at the rate when the amount arises or an allowable average rate. Conversion fees reduce what reaches your bank, and rate movements between settlement and payout can create foreign exchange gains or losses. Keep each marketplace and currency separate in your books.

Reconciling Amazon in Xero with A2X

Reconciling Amazon by hand does not scale. A settlement-summary tool such as A2X sits between Seller Central and Xero and does the grossing up. According to A2X’s documentation, it:

• Posts each settlement to Xero as a summarised draft invoice (or a bill if negative) that matches the bank deposit
• Splits settlements that cross a month end, so sales and fees land in the right month
• Maps each transaction type and country to a tax rule, so GST is coded consistently
• Creates a COGS entry from SKU costs you upload
• Handles multiple marketplaces and currencies

New Wave is A2X certified and a Xero Platinum Partner. One online retailer selling internationally came to us because its margins did not add up. We connected A2X to Xero, rebuilt the chart of accounts, set up monthly inventory tracking and corrected the GST treatment. The owner now gets reliable monthly figures and accurate margins.

Selling across channels? See our Shopify and Xero integration guide, our ecommerce accounting software stack, and our Xero accountant and ecommerce bookkeeping services.

Income tax basics for Amazon sellers

If you sell on Amazon regularly to make a profit, that income is business income. Tax is worked out on profit: sales less COGS, Amazon fees, advertising, freight, software and other business expenses. Australian residents are taxed on worldwide income, so overseas Amazon sales are included.

Your structure changes how profit is taxed:

• Sole trader: simplest. Profit is taxed at your personal rates.
• Company: a separate entity that pays its own tax, with more compliance and rules on taking money out.
• Trust or partnership: used for flexibility, with their own rules and costs.

The right choice depends on your profit, plans and personal situation. Talk to us about business structuring before you scale or expand overseas.

Records every Amazon seller should keep

The ATO requires most business records to be kept for 5 years. For Amazon sellers, that includes:

• Settlement and payout reports for every marketplace
• Seller fee tax invoices and Amazon Ads invoices
• Supplier, freight, customs and duty documents (your landed cost)
• FBA inventory and reimbursement reports, plus year-end stock valuations
• Export evidence and exchange rate workings

Amazon’s finance reports hub keeps generated reports downloadable for 90 days, so save them as you go.

Common Amazon accounting mistakes

• Recording deposits as sales. This understates income and hides fees.
• Claiming GST that is not there. Claim only from valid tax invoices, and check ad invoices separately.
• Forgetting FBA stock at 30 June. Stock in Amazon’s warehouses still counts.
• Treating reserves as lost. Deferred and reserved amounts are yours until released.
• Mixing currencies. Overseas settlements converted at the wrong rate distort profit.
• Ignoring the GST threshold. GST turnover is based on gross sales, not net payouts.

Our article on hidden profit leaks in ecommerce shows where to look.

FAQ

Do I need an accountant for Amazon FBA in Australia?

Not legally, but settlements, FBA stock and multi-currency sales are where DIY books usually go wrong. A specialist can set up the clearing account, A2X mappings and GST codes once, so monthly figures and BAS are reliable.

Does Amazon collect GST on my sales?

Not on stock held in Australia. Amazon’s Australian help pages say you are responsible for GST on your sales. Amazon’s GST collection role covers low value imported goods sold by overseas merchants.

Why doesn’t my Amazon payout match my sales?

Each payout is net of referral fees, FBA fees, storage, advertising, refunds and deferred or reserved amounts. Settlement periods run for 14 days and do not match calendar months.

Do I need to register for GST to sell on Amazon Australia?

You must register once GST turnover reaches $75,000, measured on gross sales (including export sales connected with Australia), not net payouts. Below that you can register voluntarily, which lets you claim GST credits on Amazon’s fees.

Is Amazon FBA income taxable in Australia?

Yes. Business profit is assessable income, and Australian residents are taxed on worldwide income, including overseas Amazon sales. How much tax you pay depends on profit and structure.

Can I claim GST on Amazon seller fees?

Generally yes, if you are registered for GST and hold a valid tax invoice, because Amazon Australia’s fees are priced exclusive of GST. Check advertising invoices separately.

Talk to an ecommerce accountant

If your settlements, stock or GST do not add up, talk to an ecommerce accountant who works with Amazon sellers. New Wave Accounting is a firm of Chartered Accountants (registered tax agent 25483393), a Xero Platinum Partner and A2X certified, based in Mermaid Beach on the Gold Coast and working with business owners across Australia. Tax returns, BAS, tax planning and ASIC compliance sit on a fixed monthly package, and everything else is quoted upfront in writing. No surprise bills.

Book a free 20-minute first call.

This is general information only and does not consider your circumstances. Talk to a registered tax agent before acting on it.

Sources

• Amazon Australia, Seller fees (pricing, fees exclude GST, referral fee basis, Professional plan, storage, advertising): https://sell.amazon.com.au/pricing
• Amazon Seller Central Australia, New Seller Central Finance Experience (14-day payout period, deferred amounts, account-level reserve, 90-day report availability): https://sellercentral.amazon.com.au/help/hub/reference/external/GS5VG5WKWTUB7PP8?locale=en-AU
• Amazon Seller Central Australia, Tax invoices (seller responsible for GST on product sales): https://sellercentral.amazon.com.au/help/hub/reference/external/GJATG4JM2792MYPT?locale=en-AU
• Amazon Seller Central Australia, Tax Policies (fees exclusive of GST, seller responsible for own taxes): https://sellercentral.amazon.com.au/help/hub/reference/external/G200405820?locale=en-AU
• Amazon Seller Central Australia, Amazon GST Calculation & Invoicing Methodology (Amazon Business orders only; background): https://sellercentral.amazon.com.au/help/hub/reference/external/G202084570?locale=en-AU
• Amazon Ads, Guide to advertising taxes, fees and VAT/GST: https://advertising.amazon.com/library/guides/digital-ad-taxes
• ATO, Exports and GST (60-day rule, GST turnover includes export sales connected with Australia, $75,000 threshold): https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/australians-doing-business-overseas/exports-and-gst
• ATO, GST on low value imported goods, if you are a merchant (EDP operator responsibility; merchant responsible for goods from an Australian warehouse): https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/gst-for-non-resident-businesses/how-to-charge-gst/if-you-are-a-merchant
• ATO, LCR 2018/2 GST on supplies made through electronic distribution platforms: https://www.ato.gov.au/law/view/document?DocID=COG%2FLCR20182%2FNAT%2FATO%2F00001
• ATO, Accounting for business trading stock: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/accounting-for-trading-stock
• ATO, Valuing trading stock (three methods, GST excluded): https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/accounting-for-trading-stock/valuing-trading-stock
• ATO, Simplified trading stock rules ($5,000, turnover tests): https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/accounting-for-trading-stock/simplified-trading-stock-rules
• ATO, IT 2670 Meaning of trading stock on hand: https://www.ato.gov.au/law/view/document?Docid=ITR/IT2670/NAT/ATO/00001
• ATO, GSTR 2018/2 Supplies of goods connected with the indirect tax zone: https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20182/NAT/ATO/00001&PiT=99991231235958
• ATO, Translation (conversion) rules: https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/foreign-exchange-gains-and-losses/translation-conversion-rules
• ATO, Foreign exchange rates: https://www.ato.gov.au/tax-rates-and-codes/foreign-exchange-rates-overview
• ATO, Overview of record-keeping rules for business (5 years): https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/record-keeping-for-business/overview-of-record-keeping-rules-for-business
• A2X, How to reconcile Amazon settlements in Xero (draft invoices, split-month settlements, draft bills): https://support.a2xaccounting.com/en/articles/959836-how-to-reconcile-amazon-settlements-in-xero
• A2X, Amazon to Xero integration (tax rules by transaction type and country, COGS entry, multiple marketplaces and currencies): https://www.a2xaccounting.com/integrations/amazon/xero