GST on Marketplace Sales in Australia: A Seller's Overview

This article is general information only, not tax or financial advice. Rules change and depend on your circumstances, so check the Australian Taxation Office and speak to a registered tax agent.

For most Australian businesses selling physical goods on marketplaces, GST works much as it does for any other sale: once your GST turnover reaches the $75,000 threshold you must register, charge 10% GST on taxable sales, and report it on your BAS. The marketplace collects the customer's money, but it does not usually take on your GST obligations for local sales of goods. What makes marketplace GST harder is the paperwork: sales arrive net of fees, fees may be quoted with or without GST, and refunds land in later periods.

When an online seller needs to register

The ATO says you must register for GST when your business has a GST turnover of $75,000 or more, or when you start a business and expect to reach that threshold in the first year, and that once registration is required you have 21 days to do it (ATO, 2026). You need an ABN first. Some activities, such as ride-sourcing, require registration regardless of turnover, so check the ATO list for your situation.

Before that, there is a more basic question: are you in business at all? The ATO's guide for online sellers explains that selling online can be a business, an income-producing side activity, or a hobby, and that the answer changes your tax obligations (ATO, 2026). Retailers selling across several marketplaces are almost always in business.

Who charges GST: you or the marketplace?

Australia has special rules for electronic distribution platforms (EDPs), which include online marketplaces. Under these rules, the platform operator is generally responsible for GST on sales of low value imported goods and imported services or digital products to Australian consumers made through it (ATO, 2025). Low value imported goods are those with a customs value of A$1,000 or less when the price is agreed (ATO, 2026).

For Australian-based merchants, the same ATO page says an EDP operator can only agree to take on GST where the sales are digital products or services, under a written agreement made before the sale. In practice, a local retailer shipping physical stock from an Australian warehouse through a marketplace generally remains responsible for the GST on those sales. Confirm your position with your adviser.

GST on marketplace fees and GST credits

Marketplace commissions, subscriptions and advertising are business expenses, and if GST is charged on them you may be able to claim GST credits. Two practical issues trip sellers up:

Fees are quoted differently. Amazon AU's fee schedule states its prices do not include applicable taxes such as GST (Amazon Seller Central, 2026), whereas eBay says fees on its Pro pages are displayed inclusive of Australian GST (eBay Australia, 2026). Your reconciliation needs to know which convention each channel uses, or GST credits will be over- or under-claimed.

You need the right documents. The ATO's BAS tips say to only claim GST credits if you hold tax invoices for purchases of $82.50 (including GST) or more, to claim within the four-year time limit, and not to claim credits on items that carry no GST, such as bank fees (ATO, 2026). Download each marketplace's tax invoices for fees every period, not just the payout report.

Refunds, returns and adjustments

A refund in one BAS period often relates to a sale reported in an earlier one. Most accounting systems handle this as an adjustment in the period the refund happens, but only if the refund is recorded against the right sale with the right GST amount. Partial refunds, shipping refunds and goodwill credits all need the same care. Our guide to tracking refunds and chargebacks covers how to keep that link intact.

Records the ATO expects you to keep

The ATO's guidance for businesses is clear on the basics. It tells businesses to keep records of all sales, fees and expenses, reconcile sales with bank statements, and keep tax invoices and other GST records for five years (ATO, 2026). For a marketplace seller, that means:

• order-level sales records for each channel, showing GST;
• settlement and payout reports that link sales to bank deposits;
• tax invoices for marketplace fees, advertising and fulfilment;
• refund and return records tied to original orders.

Reconciling each settlement, as described in our guide to marketplace settlement reconciliation, produces most of this as a by-product.

Key figures

• GST registration is required at a GST turnover of $75,000 or more, within 21 days of becoming required (ATO, 2026).
• The GST rate in Australia is 10%, or 1/11th of a GST-inclusive price (ATO, 2026).
• Marketplaces are generally responsible for GST on imported goods with a customs value of A$1,000 or less sold to consumers through them (ATO, 2026).
• Keep tax invoices and GST records for five years (ATO, 2026).

How eComChannels helps

eComChannels Finance auto reconciliation breaks each marketplace payout into sales, fees, refunds and adjustments at order level, and records whether each channel's fees are quoted including or excluding GST. That gives your bookkeeper or accountant clean, consistent figures for sales GST and fee GST credits, instead of a net deposit to unpick.

Orders from every channel are held in eComChannels order management, so refunds stay linked to the original sale and its GST. The outcome is less time preparing BAS, fewer adjustments after lodgement and a clear audit trail if the ATO asks questions. eComChannels does not give tax advice; it organises the data your adviser needs. Book a demo or start a 30-day free trial.

FAQ

Does Amazon or eBay pay GST on my sales for me?

For an Australian business selling physical goods from within Australia, generally no. The marketplace rules mainly cover low value imported goods and imported digital products. Check the ATO's guidance and confirm with your tax agent.

Can I claim GST on marketplace fees?

If you are registered for GST, GST was charged on the fee and you hold a valid tax invoice, you can generally claim a GST credit. Check how each marketplace quotes its fees, since some include GST and some do not.

What if I sell under $75,000 a year?

Registration is optional below the threshold in most cases. If you do register, the ATO says you generally need to stay registered for at least 12 months.