Accounting and tax for Amazon sellers.
You can generally claim your Amazon fees, advertising, inventory and storage costs against your marketplace income, provided each one relates to earning it and you keep the records. This guide covers what Amazon sellers typically claim, how GST applies to marketplace sales, and how we reconcile settlement statements that bundle everything into one confusing number. We're Brisbane based and work with Amazon sellers right across Australia.
Updated July 2026 · Reviewed by the LINK Advisors team
What amazon sellers can claim.
Ordered by typical value. Every claim still has to pass the ATO's tests: you paid for it, it relates to earning your income, and you can show a record.
Amazon referral and FBA fees
Referral fees, fulfilment fees and other charges Amazon deducts before paying you out are generally deductible as a cost of selling through the platform.
Inventory and landed cost of stock
The cost of stock you buy or manufacture, plus freight and duty to land it in Australia or in an FBA warehouse, generally forms part of your cost of goods sold and needs to be tracked against units actually sold, not just units bought.
Amazon advertising (PPC)
Sponsored product and sponsored brand advertising spend within Amazon is generally deductible and is often one of the largest costs for sellers competing on popular search terms.
FBA storage and long-term storage fees
Fees charged for storing stock in Amazon's fulfilment centres are generally deductible as an ongoing cost of using the FBA program.
Product photography and listing content
Photography, video and copywriting costs to build out your product listings are generally deductible.
Repricing and inventory management software
Subscriptions to tools that manage your pricing, stock levels or multi-marketplace listings are generally deductible.
Packaging and prep costs
Poly bags, labelling and prep work required to meet FBA requirements before stock is sent in are generally deductible.
Returns and refund handling costs
Costs associated with processing returns, including any disposal or removal fees charged by Amazon, are generally deductible.
Accounting and settlement reconciliation software
Fees for your accounting support and any tool used to reconcile Amazon settlement statements into Xero are generally deductible.
GST and BAS, done right.
Domestic sales to Australian customers through Amazon are generally taxable, the same as any other retail sale, once you're GST registered. Where it gets more complex is that Amazon, as the marketplace operator, can be responsible for collecting and remitting GST on certain sales itself, particularly around low-value imported goods, which means you don't always charge and remit that GST yourself.
This marketplace-collected GST layer is genuinely one of the trickier parts of selling on Amazon, since your own GST reporting needs to correctly exclude sales where Amazon has already handled it, rather than double counting. It's worth us reviewing your specific selling setup rather than assuming a single rule covers every sale.
Amazon settlement statements net off referral fees, FBA fees, refunds, reserves and sometimes advertising spend before paying you out, so booking the deposit as revenue significantly understates your actual sales. A reconciliation tool like A2X breaks the settlement back into its real components so your Xero file shows true sales, true fees and the correct GST position.
The right structure for the work.
Amazon selling is often more inventory-heavy than other online channels, since FBA rewards keeping enough stock in the fulfilment network to stay in stock and competitive. That capital tied up in stock, plus the platform risk of relying on one marketplace, is worth thinking about early. Sole trader suits many sellers in the validation phase, while a company structure often earns its keep once inventory value and profit reinvestment both grow.
Run the work, we run the numbers.
A2X or a similar connector purpose-built for Amazon settlement statements is close to essential once you're selling meaningful volume, since it's the difference between guessing at your numbers and knowing them. Combined with inventory software that tracks landed cost and stock across FBA and any other channels, you get a genuine per-SKU margin rather than a single blended guess.
Frequently asked questions.
How is GST handled on Amazon marketplace sales?
For some sales, particularly certain low-value imported goods, Amazon as the marketplace operator can be responsible for collecting and remitting the GST itself rather than you. Your own reporting needs to reflect this correctly, and we review your specific setup to make sure you're not double counting or missing it.
How do I reconcile Amazon settlement statements in Xero?
Through a connector like A2X, which splits each settlement back into gross sales, fees, refunds, reserves and GST rather than you booking the net payout as revenue. We set this up so it runs automatically going forward.
What about FBA storage and fulfilment fees?
These are generally deductible as an ongoing cost of using Amazon's fulfilment network. Keeping them properly categorised in Xero, rather than lumped into a single 'Amazon fees' line, helps you see whether storage costs are creeping up as your stock volume grows.
Can I claim product photography and listing costs?
Yes, generally. Photography, video and listing copywriting used to build out your product pages are deductible as a cost of marketing and selling your products.
How should I structure an Amazon business as it grows?
It depends on how much capital you've got tied up in stock, how much profit you're reinvesting versus drawing out, and how reliant you are on the one platform. Sole trader often suits the early validation stage, while a company structure tends to earn its keep as inventory value and profit both scale up.
Talk to an accountant who knows Amazon seller businesses.
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