Australia’s tax laws are going to change in a few days, but I don’t see this being discussed widely in author circles.
The Passive Voice blog posted a notice from Amazon Publishing yesterday which brought the change to my attention:
Due to new legislation in Australia, a Goods and Services Tax (GST) of 10% will be levied on all eBooks and audiobooks sold to customers residing in Australia beginning July 1, 2017. The royalty rates in your contract with Amazon Publishing are unchanged (as royalties are paid exclusive of GST).Amazon Publishing will not be changing its prices in connection with GST at this time.
The change in tax laws was first announced in August 2015, and it affects online sales by overseas sellers, so authors with books in KDP or audiobooks in Audible will be affected.
What’s odd, though, is that I do not see any mention of Australia’s GST in KDP support pages or on its forum.
Was Amazon already collecting Australian GST on ebook sales, do you know?
image by Flying Cloud