GST for Online Sellers in Australia: A Practical Guide

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

Australian online sellers must register for GST once their GST turnover reaches $75,000 (measured over the past 12 months or projected over the next 12), and from then on add 10% GST to sales to Australian customers. Goods you export to overseas customers are generally GST-free if you send them within 60 days and keep proof, while GST on stock you import is paid at the border (or deferred) and usually claimed back as a GST credit. The detail, especially around marketplaces, drop shipping and low value imports, is where most sellers get caught out.

When do online sellers need to register for GST?

You must register within 21 days of reaching the GST threshold. GST turnover is your total business income (not profit), minus the GST in your sales and a few excluded items such as input-taxed sales and sales not connected with Australia.

Meeting either test triggers registration:

• Current GST turnover: this month plus the previous 11 months totals $75,000 or more.
• Projected GST turnover: this month plus the next 11 months is likely to be $75,000 or more.

Often missed:

• Export sales count. Overseas sales are included in GST turnover even though they are GST-free. In the ATO’s example, an online seller with $50,000 of Australian and $50,000 of overseas sales has GST turnover of $100,000 and must register.
• Late registration costs money. You may have to pay GST on sales made since you were required to register, even though you never charged it, plus penalties and interest.

Voluntary registration

Below the threshold, registration is optional. You need an ABN and generally must stay registered for at least 12 months. You can then claim GST credits on stock, advertising and software, but must add GST to Australian sales and lodge a BAS. Mainly-export sellers often find it worthwhile, since exports are GST-free while GST in their costs is still claimable. Model it on your own numbers first.

Charging GST on sales to Australian customers

Once registered, you add 10% GST. On GST-inclusive prices the GST is one eleventh: a $110 sale contains $10 of GST.

This applies on every channel: your own Shopify store, Amazon, eBay or wholesale. Under the ATO’s rules a marketplace (an “electronic distribution platform”) is responsible for GST mainly on low value imported goods sold to consumers and on imported services and digital products, so GST on goods you sell from Australian stock stays with you.

If you drop ship (goods go straight from an overseas supplier to your Australian customer), the ATO says a GST-registered Australian seller must account for GST on those low value sales. Our Shopify and Xero integration guide shows how to map platform sales and fees correctly.

Do I charge GST to overseas customers?

Generally not, for goods you export. They are GST-free if you export them within 60 days of the earlier of:

• receiving any payment for the goods, or
• issuing an invoice for them.

You can ask the ATO to extend the 60 days, and you can still claim GST credits on your costs.

Evidence is a condition, not a formality. Under ATO ruling GSTR 2002/6 you need enough documentation for an independent person to reasonably conclude the goods left Australia: typically the order or invoice showing the overseas address and payment, plus the courier consignment note or Australia Post lodgement record. Without it, the sale is taxable.

Take extra care with:

• Australian delivery address. If the goods are delivered in Australia, or the customer or their agent collects and exports them, stricter conditions apply. Get advice before treating these sales as GST-free.
• Digital products and services. GST-free only if the customer is outside Australia and the item is used outside Australia. If you can’t identify the customer’s location, the ATO treats the sale as taxable.
• Stock held overseas. Selling from an overseas warehouse to overseas customers can mean the sale is “not connected with Australia” and outside GST altogether. That depends on the facts, so have it checked.

GST on stock you import into Australia

GST on imported stock is collected at the border by the Department of Home Affairs (through the Australian Border Force), not by your supplier. It is 10% of the value of the taxable importation: the customs value, plus customs duty, plus international transport and insurance to Australia (and wine equalisation tax, where relevant).

It is generally paid before release, usually via your customs broker, so plan for it in cashflow. (Import GST you can claim back is not part of landed cost; our guide to inventory accounting and landed cost explains what is.)

If you are registered and import the goods for your business, you can claim the import GST as a GST credit in the BAS for the period you pay it. Hold the evidence: the finalised import declaration (N10, or N30 for goods cleared from a bonded warehouse) and the Home Affairs receipt. Your broker can supply or keep these.

The deferred GST scheme

Regular importers can use the deferred GST scheme to pay import GST through their monthly BAS instead of at the border. You must have an ABN, be registered for GST, lodge monthly, lodge online and pay electronically, and be up to date with lodgements and payments. Customs duty is still paid at the border.

The deferred amount is pre-filled at label 7A. If you are entitled to a full credit, you claim the same amount at 1B on that BAS, so the two offset.

Low value imported goods: what they mean for you

Since 1 July 2018, GST applies to sales of goods with a customs value of A$1,000 or less (excluding tobacco and alcohol) to Australian consumers. It is collected by the overseas seller, the marketplace or a redeliverer (such as a parcel-forwarding service) rather than at the border. A “consumer” is a buyer who is not GST-registered or is not buying for their business.

Buying low value goods from overseas (samples, packaging, small stock orders): give the supplier your ABN and state you are registered for GST. You then shouldn’t be charged GST, so there is nothing to claim. If you are charged anyway, ask for a refund; claiming a credit has strict conditions, including a valid tax invoice showing an ABN for purchases over A$82.50, and overseas suppliers in the ATO’s simplified system have an ATO reference number, not an ABN. Consignments over A$1,000 are taxed at the border.

Selling through a marketplace: these rules don’t shift GST on your Australian-stocked goods to the platform. If you drop ship low value goods from overseas through a marketplace, who accounts for GST depends on the platform’s role and your agreement with it. That is genuinely technical, so get advice.

Marketplace and app fees: claiming GST credits

Only claim a credit where GST was actually charged and you hold a valid tax invoice (required over A$82.50).

• Shopify: Australian stores pay 10% GST on the subscription and shipping labels unless GST-registered with an ABN added to the billing profile (this applies to invoices issued after you add it). Shopify Payments processing fees include GST.
• Amazon: for fees paid to an Amazon store outside Australia (such as Amazon.com), Amazon charges Australian GST on selling and advertising fees only if you haven’t provided your ABN. For Amazon.com.au fees, check the Seller Fee Tax Invoices in Seller Central’s Tax Document Library.
• Other overseas apps: if no GST was charged because you quoted your ABN, there is nothing to claim. You only apply the “reverse charge” (paying the GST yourself on your BAS) if you wouldn’t be entitled to a full credit, such as where part of the use is private.

Record payouts gross (full sales, fees as expenses); netting understates G1 and buries fee credits. Our Amazon seller accounting guide covers settlement reports.

BAS reporting basics: G1, G2, 1A and 1B

With GST turnover under $10 million, Simpler BAS is generally the default: just G1, 1A and 1B. The full reporting method (required from $10 million) adds labels such as G2.

Common GST mistakes online sellers make

1. Ignoring the projected test and the fact that exports count toward $75,000.
2. Treating every overseas order as GST-free without proof of export, or when goods were delivered in Australia.
3. Claiming import GST without the finalised import declaration, or claiming GST on low value imports where none was paid.
4. Claiming GST on fees that never included it, such as a Shopify subscription after the ABN was added.
5. Recording payouts net of fees, one of the hidden profit leaks in ecommerce.
6. Not quoting your ABN to overseas suppliers.

Summary: GST treatment at a glance

FAQ

Do I need to register for GST if I only sell on Amazon or Shopify?
Yes, once your GST turnover reaches $75,000. The platform makes no difference to the threshold.

Do I charge GST on overseas sales?
Not if you export the goods within 60 days of payment or invoice and keep proof of export. Goods delivered to an Australian address are usually taxable, even for an overseas customer.

Do I pay GST on goods imported from overseas under $1,000?
Not at the border. If you’re GST-registered and quote your ABN, the overseas supplier shouldn’t charge GST either.

Can I claim GST on Shopify fees?
Only where GST was charged. Shopify Payments fees include GST; the subscription stops carrying GST once you add your ABN.

What if I registered for GST late?
You may owe GST on sales from the date you should have registered, plus penalties and interest. Backdating is generally limited to four years, so get advice quickly.

Talk to an ecommerce accountant

GST for online sellers rewards getting the setup right once. One online retailer we worked with sold internationally and its margins didn’t 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.

New Wave Accounting is a Chartered Accountants firm and registered tax agent, a Xero Platinum Partner and A2X certified, working as an ecommerce accountant for sellers across Australia. BAS and tax sit on a fixed monthly package; everything else is quoted upfront in writing.

See our complete guide to ecommerce accounting, ecommerce bookkeeping, Xero accountant services and software stack guide. Then talk to an ecommerce accountant or book a free 20-minute call.

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

Sources

• ATO, Registering for GST (updated 14 Sep 2026): https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst
• ATO, Exports and GST: https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/australians-doing-business-overseas/exports-and-gst
• ATO, GSTR 2002/6 Exports of goods: https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20026/NAT/ATO/00001
• ATO, GST and imported goods: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/international-transactions/gst-and-imported-goods
• ATO, Deferred GST scheme: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/international-transactions/deferred-gst
• ABF, GST and other taxes when importing: https://www.abf.gov.au/importing-exporting-and-manufacturing/importing/cost-of-importing-goods/gst-and-other-taxes
• ATO, GST on low value imported goods: https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/gst-for-non-resident-businesses/gst-on-low-value-imported-goods
• ATO, GST and Australian businesses: imported services, digital products and low value imported goods: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/international-transactions/australian-business-importing-goods-and-services
• ATO, If you are an electronic distribution platform operator: https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/gst-for-non-resident-businesses/how-to-charge-gst/if-you-are-an-edp-operator
• ATO, Reverse charge GST on offshore goods and services purchases: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/international-transactions/reverse-charge-gst-on-offshore-goods-and-services-purchases
• ATO, When you can claim a GST credit: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/claiming-gst-credits/when-you-can-claim-a-gst-credit
• ATO, GST reporting methods: https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/business-activity-statements-bas/goods-and-services-tax-gst/gst-reporting-methods
• ATO, Step 1: Sales (G1 to G3): https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/completing-your-bas-for-gst/complete-your-bas/step-1-sales
• ATO, Simpler BAS GST bookkeeping guide: https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/business-activity-statements-bas/goods-and-services-tax-gst/simpler-bas-gst-bookkeeping-guide
• Shopify Help Center, GST exemptions for Shopify billing in Australia and New Zealand: https://help.shopify.com/en/manual/your-account/manage-billing/billing-charges/types-of-charges/taxes/billing-taxes-australia-new-zealand
• Shopify Help Center, Tax reporting with Shopify Payments for Australia: https://help.shopify.com/en/manual/payments/shopify-payments/supported-countries/australia/tax-reporting
• Amazon Seller Central, Tax on Remote Services FAQ: https://sellercentral.amazon.com.au/help/hub/reference/external/GZVGU4JR7Z75BB5E
• Amazon Seller Central, Australia Goods and Services Tax (GST): https://sellercentral.amazon.com/help/hub/reference/external/G202146000