GST for eCommerce Sellers: What You Must Know

If you're selling products online in or into Australia, GST compliance isn't optional, it's essential. Whether you're a domestic business or an overseas retailer targeting Aussie customers, you need to understand your obligations under Australian GST law.

Here’s what every eCommerce seller should know:

1. You May Need to Register Even If You’re Not Based in Australia

Since 1 July 2018, overseas sellers supplying goods to Australian consumers must register for GST if their turnover from these sales is AUD $75,000 or more per year.

This includes:

• Online marketplaces like Amazon, eBay, and Etsy

• Direct-to-consumer sellers via Shopify or WooCommerce

• Drop shippers and print-on-demand stores

Even if you don’t have a physical presence in Australia, GST still applies if you’re delivering low-value goods (under $1,000 AUD).

2. Low-Value Imports: The $1,000 Rule

Australia removed the GST exemption for low-value imported goods. Now, 10% GST applies to most goods valued at $1,000 AUD or less that are sold to Australian consumers.

You’re responsible for collecting GST at the point of sale and remitting it to the ATO if:

• You exceed the $75,000 threshold

• You’re selling to consumers, not businesses (B2C)

• You’re the merchant, not just the platform

Even if you’re using a fulfilment centre overseas, GST still applies.

3. Multi-Jurisdiction Challenges

Operating in multiple countries? Be aware that GST (Australia), VAT (EU), and Sales Tax (US) all have different rules. For Australian GST:

• B2C sales require GST to be charged and remitted.

• B2B sales may be GST-free if the Australian customer provides their ABN and declares they’re GST-registered.

Carefully track where your customers are based and ensure you’re applying the correct tax treatment.

4. You Must Issue Tax Invoices

Australian customers may request a tax invoice, and you're legally obligated to provide one if the purchase is $82.50 (including GST) or more.

A valid tax invoice must include:

• Your business name and ABN (or ARN for overseas businesses)

• The date of issue

• The total price including GST

• A clear statement that GST is included

• A description of the goods or services

Without proper documentation, you and your customers may face issues during ATO audits or disputes.

5. How to Stay Compliant

✅ Register for GST as soon as your turnover nears $75,000 AUD

✅ Charge 10% GST on low-value goods sold to Australian consumers

✅ Remit GST quarterly or monthly to the ATO

✅ Keep detailed records of all sales, including GST collected

✅ Engage an Australian tax adviser to help with multi-country tax compliance

Final Word

Navigating GST obligations as an eCommerce seller can be complex, but with the right advice and systems in place, it doesn’t have to be overwhelming. Dolman Bateman helps local and overseas online sellers stay compliant, maximise profits, and avoid costly ATO penalties.

Need help with GST registration or compliance?

Contact us today to speak to an experienced accountant who understands eCommerce.

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Disclaimer:

The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.