GST for Online Sellers in Australia: eBay, Etsy, Amazon and Shopify

You only need to charge GST on your online sales once your business turns over $75,000 a year. Selling your own unwanted things on eBay or Facebook Marketplace doesn’t count, and neither does a genuine hobby.

Past that point, the rules are the same whether you sell on eBay, Etsy, Amazon, Shopify or your own website. This guide covers when you’re in business, when to register, how GST works on your sales and platform fees, and what happens when you post goods overseas.

Are you in business or just selling stuff?

The ATO looks at the whole picture rather than one test. Clearing out your wardrobe on eBay or selling your old couch on Facebook Marketplace isn’t a business, and neither is a hobby you do mainly for enjoyment. Buying stock to resell, making products to sell, or running a shop with regular listings usually is.

These are the signs the ATO says point to a business:

• You sell with a commercial purpose and intend to make a profit
• You list and sell regularly, with a clear routine
• You run it in a business-like way: planning, records, advertising
• The activity has some size and scale, not the odd sale

If you’re in business, get an ABN even while you’re under the GST threshold. Our guide to ABN vs GST registration explains the difference.

When do online sellers need to register for GST?

If you’re in business, register for GST within 21 days of your GST turnover reaching $75,000, or as soon as you expect it to. GST turnover means your total sales across every platform and your own site, before fees and costs. A seller who takes $80,000 on Etsy and keeps $30,000 after costs is over the threshold.

Sales to overseas buyers count towards the $75,000 too, even though they’re GST-free. Below the threshold, registering is optional. Check where you stand with our GST registration checker.

How GST works on your sales

Once you’re registered, GST applies to your sales to Australian buyers. Most online sellers include it in the listed price, so a $55 item contains $5 of GST. You report that GST on your BAS. If dividing by 11 is new to you, here’s why you divide by 11 to find GST, or use our GST calculator.

eBay, Etsy and Amazon don’t collect GST for you on these sales. Marketplaces only collect it themselves when an overseas seller sells goods worth $1,000 or less to an Australian customer. As an Australian seller, charging and reporting GST is your job.

Selling to overseas buyers

Goods you post overseas are GST-free exports, as long as they leave Australia within 60 days of you being paid or issuing an invoice, whichever comes first. Keep the postage receipt or tracking as proof of export.

You don’t charge Australian GST on those sales, but you can still claim GST credits on the stock and costs that went into them. Digital products sold to overseas customers follow different rules, which we cover in GST on overseas digital services.

GST on platform fees and stock

Etsy charges Australian sellers GST on its fees, and most marketplaces, payment providers and shipping services do too. Once you’re registered, claim that GST back at 1B on your BAS using the fee statement or tax invoice each platform provides. If you’re not registered, the GST is simply part of the cost.

Buying stock from overseas? Orders over $1,000 pay GST and any duty at the border, and orders of $1,000 or less usually have GST added at checkout. Either way, a registered seller can claim it back. Our import GST calculator works out the amount.

A worked example

Mia sells handmade candles on Etsy and through her own Shopify store. Over the last 12 months she sold $68,000 to Australian buyers and $9,000 overseas. Her GST turnover is $77,000, so she must register within 21 days.

Here’s her first quarter after registering:

Her G1 total sales is $25,000, 1A is $2,000 and 1B is $750, so she pays the ATO $1,250 for the quarter. Our guide to lodging your BAS explains each label.

Records to keep

• Sales reports or tax summaries from each platform
• Fee statements and tax invoices from marketplaces and payment providers
• Receipts for stock, materials and postage
• Proof of postage for every overseas order
• Copies of every BAS you lodge

Keep them for five years. For the mistakes that catch new sellers out, see common BAS mistakes.

Frequently asked questions

Do I need an ABN to sell on Etsy or eBay?

Only if you’re running a business. Selling personal items or a genuine hobby doesn’t need one. Once you’re selling regularly to make a profit, get an ABN even if you’re under the GST threshold.

Does eBay charge GST on my sales in Australia?

Not on sales by Australian sellers. eBay and other marketplaces only collect GST when overseas sellers sell goods of $1,000 or less to Australian buyers. If you’re a registered Australian seller, you charge and report the GST yourself.

Do I charge GST to overseas customers?

No. Physical goods you send overseas within 60 days of payment or invoice are GST-free exports. They still count towards your $75,000 turnover.

Is money from Facebook Marketplace taxable?

Selling your own used belongings isn’t. Regularly buying things to resell for a profit is a business, so that income is taxable and counts towards the GST threshold.

Can I claim GST on Etsy fees?

Yes, once you’re registered for GST. Etsy’s fees for Australian sellers include GST, and you claim it at 1B on your BAS using your fee statement.

Does the $75,000 threshold include all my platforms?

Yes. Add up your sales from every marketplace, your own website and any in-person sales. It’s total sales before fees and costs.