Australian e-commerce sellers must register for GST once turnover hits $75,000. GST at 10% applies to most domestic sales of goods and services. Sellers using Shopify, Amazon, or eBay need to configure GST correctly across every channel, lodge BAS quarterly (or monthly), and understand how marketplace facilitator rules and low-value imported goods affect their obligations. This guide covers every obligation from registration to lodgement.
You launched an online store, sales are growing, and suddenly, GST feels like a foreign language. You are not alone. The intersection of e-commerce platforms, multiple sales channels, and Australian tax law creates genuine complexity that catches many online sellers off guard.
Whether you sell through Shopify, Amazon, eBay, Etsy, or your own WooCommerce site, you need a clear understanding of your GST obligations. Getting it wrong means overpaying, underpaying, or facing ATO penalties that are entirely avoidable.
This guide walks you through every GST obligation an Australian online retailer faces in 2026, from registration thresholds to BAS lodgement. If you are looking for specialist support, our e-commerce accounting services are built for exactly this.
When Must an Online Seller Register for GST?
You must register for GST when your annual turnover reaches or is expected to reach $75,000. This applies to all Australian businesses selling goods or services, including online-only retailers. Voluntary registration is available below this threshold and can be advantageous for claiming input tax credits on business expenses.
The $75,000 threshold is based on your GST turnover, which includes all income from taxable supplies. It does not include GST-free sales (such as basic food or exports) or input-taxed supplies.
For e-commerce sellers, the calculation is straightforward: add up all your revenue from domestic sales across every channel. If it hits $75,000 in the past 12 months (or you project it will in the next 12 months), you must register.
Should you register voluntarily?
Many online sellers register before hitting the threshold. The main advantage is claiming input tax credits on business expenses: platform fees, inventory purchases, shipping costs, software subscriptions, and professional services. If your expenses carry significant GST, voluntary registration can improve your cash flow. The trade-off is the compliance obligation of lodging regular BAS returns.
How Does GST Apply to E-Commerce Sales in Australia?
GST-registered Australian e-commerce sellers must charge 10% GST on most domestic sales of goods and services. The seller collects GST from the buyer, reports it on their BAS, and remits the net amount (GST collected minus GST credits on expenses) to the ATO each quarter or month.
Under the GST Act, a taxable supply exists when the sale is made for consideration, in the course of your enterprise, is connected with Australia, and you are registered (or required to be registered) for GST.
Most physical products sold domestically through an online store are taxable supplies. Common exceptions include exports (GST-free), basic food (GST-free under Schedule 1), and certain health and educational supplies.
Input tax credits: what you can claim back
As a registered business, you can claim credits for GST included in the price of goods and services you purchase for your business. For e-commerce sellers, this typically includes inventory purchases from Australian suppliers, Shopify or platform subscription fees, payment processing fees (where GST applies), shipping and packaging costs, professional services (accounting, legal), and office supplies and software.
What Are the GST Rules for Low-Value Imported Goods?
Since 1 July 2018, GST applies to imported goods valued at A$1,000 or less when sold to Australian consumers by overseas suppliers, online marketplaces, or re-deliverers with Australian GST turnover of $75,000 or more. For goods over $1,000, GST is collected at the border by the Australian Border Force.
This rule primarily affects non-resident sellers and international marketplaces. However, Australian e-commerce sellers need to understand it for two reasons.
First, if you source inventory from overseas suppliers who sell directly to Australian consumers through the same platform, the low-value goods rule affects your competitive pricing. Your overseas competitors are now required to charge GST, levelling the playing field.
Second, if you operate a dropshipping model where goods are shipped directly from an overseas supplier to your Australian customer, you need to consider whether GST has already been collected at the supply chain level. Incorrect treatment can result in double taxation or missed credits.
Multi-Channel GST Compliance
Selling across multiple platforms is where e-commerce GST becomes genuinely complex. Each platform handles GST differently, and understanding these differences is critical to accurate reporting.
| Platform | GST Handling | What You Need to Do |
|---|---|---|
| Shopify | You configure and collect GST directly | Set up tax rates in Shopify settings; use A2X to sync to Xero |
| Amazon AU | Amazon collects GST as a marketplace facilitator on some sales | Review settlement reports carefully; avoid double-counting marketplace-collected GST |
| eBay AU | eBay collects GST on behalf of non-resident sellers; Australian sellers collect directly | Ensure your listings reflect GST-inclusive pricing |
| Etsy | Etsy collects GST on sales to Australian buyers from non-resident sellers | Australian sellers manage their own GST; reconcile Etsy fees separately |
| WooCommerce | You manage all GST configuration | Configure tax classes and rates in WooCommerce settings; sync to accounting software |
The critical distinction is between platforms that act as marketplace facilitators (collecting and remitting GST on your behalf for certain transactions) and platforms where you are solely responsible. If you sell across multiple channels, our Xero-Shopify setup guide explains how to integrate your sales data cleanly into your accounting system.
The most common mistake we see is Australian sellers on Amazon double-counting GST that Amazon has already collected and remitted. This inflates your GST liability on your BAS and means you overpay. Always reconcile your platform settlement reports against your accounting records before lodging.
How Do You Lodge BAS as an E-Commerce Business?
Most e-commerce businesses with GST turnover under $20 million lodge BAS quarterly, due on the 28th of the month following each quarter. Businesses using a registered tax agent receive an automatic extension of approximately four weeks. BAS reports your total sales, GST collected, GST credits claimed, and PAYG instalments.
For the 2025-26 financial year, the quarterly BAS due dates are:
| Quarter | Period | Standard Due Date |
|---|---|---|
| Q1 | 1 Jul to 30 Sep 2025 | 28 October 2025 |
| Q2 | 1 Oct to 31 Dec 2025 | 28 February 2026 |
| Q3 | 1 Jan to 31 Mar 2026 | 28 April 2026 |
| Q4 | 1 Apr to 30 Jun 2026 | 28 July 2026 |
For a full list of upcoming deadlines, see our ATO due dates calendar. If you use a registered tax agent such as 42 Advisory, you generally receive an additional four weeks, though specific dates vary by quarter.
Cash vs accrual reporting
E-commerce businesses with a turnover under $10 million can choose between cash and accrual reporting for GST. Cash reporting means you account for GST when payment is received or made. Accrual reporting means you account for GST when invoices are issued or received. Most online retailers find accrual reporting aligns better with platform settlement cycles, though cash reporting can be simpler for smaller operations.
Our BAS lodgement services handle the full process, from reconciling your multi-channel sales data to lodging on time with the ATO.
Common GST Mistakes Online Sellers Make
After working with hundreds of e-commerce clients, we see the same errors repeatedly. Each one either costs money through overpaid GST or creates compliance risk with the ATO.
- Treating Shopify payouts as revenue. Shopify deposits are net of fees, refunds, and chargebacks. Recording the payout amount as gross revenue understates your sales and overstates your GST credits.
- Double-counting marketplace-collected GST. When Amazon collects GST on your behalf, including that amount again in your BAS means you remit GST twice on the same sale.
- Missing input tax credits on platform fees. Shopify subscription fees, A2X fees, and many app costs include GST that you can claim back. Many sellers overlook these.
- Incorrect GST treatment of shipping income. If you charge customers for shipping, this is generally a taxable supply and must include GST. Failing to account for this understates your GST liability.
- Not reconciling before lodging. Platform reports and bank statements rarely match exactly due to timing, holds, and currency rounding. Lodging BAS without reconciliation guarantees errors.
For a deeper look at the financial impact of these issues, see our guide on e-commerce accounting mistakes that cost you money.
Have Questions About Your E-Commerce GST?
Our CPA team helps online retailers across Shopify, Amazon, eBay, and Etsy get their GST right from day one.
Contact Us Today →What Happens If You Get GST Wrong?
The ATO imposes a failure-to-lodge penalty starting at $313 per 28-day period for small entities, escalating to over $1,565 depending on the entity's size and the delay. Interest charges (General Interest Charge) also accrue daily on any outstanding GST liability. Making a voluntary disclosure before the ATO contacts you can significantly reduce penalties.
Beyond direct penalties, the ATO now runs sophisticated data-matching programs that cross-reference information from e-commerce platforms, payment processors, and banks. The Sharing Economy Reporting Regime (SERR) now requires digital platforms to report seller income directly to the ATO twice per year.
This means the ATO already knows what you earned through major platforms. Discrepancies between your reported income and platform data will trigger reviews. The best protection is accurate, timely reporting from the start.
Voluntary disclosure
If you discover a GST error in a previous period, lodging a voluntary disclosure with the ATO before they contact you can reduce penalties by up to 80%. We always recommend addressing errors proactively rather than waiting for the ATO to identify them.
Summary
Here is a quick reference of the key GST obligations for Australian e-commerce sellers:
| Obligation | Key Detail |
|---|---|
| GST registration | Required at $75,000 turnover; voluntary registration available below |
| GST rate | 10% on taxable supplies |
| BAS lodgement | Quarterly (28th of the following month) or monthly for turnover over $20M |
| Low-value imported goods | GST on goods under $1,000 from overseas sellers (since 1 Jul 2018) |
| Late lodgement penalty | From $313 per 28-day period (small entities) |
| ATO data-matching | Platforms report seller income under SERR; discrepancies trigger reviews |
Getting GST right from the start saves money, reduces stress, and keeps the ATO at arm's length. If your e-commerce business is approaching or has passed the $75,000 threshold, now is the time to set up a compliant, efficient system. Our business tax services are designed to handle exactly this.
Book an E-Commerce GST Review
Our Melbourne-based CPA team will review your GST setup across every sales channel and ensure you are compliant, claiming all credits, and lodging on time.
Schedule a meeting →Disclaimer: The information provided in this article is general in nature and does not constitute specific tax, legal, or financial advice. We recommend seeking professional advice tailored to your individual circumstances. 42 Advisory is a CPA firm and Registered Tax Agent.
Frequently Asked Questions
Do I need to charge GST on Shopify sales under $75,000?
No. If your GST turnover is below $75,000 and you have not voluntarily registered for GST, you are not required to charge GST on your sales. However, you also cannot claim input tax credits on your business expenses. Many growing e-commerce sellers find voluntary registration beneficial once their expenses carry significant GST amounts.
How does GST work when Amazon collects it on my behalf?
Amazon acts as a marketplace facilitator for certain transactions and collects GST directly from the buyer. When this happens, the GST is Amazon's obligation, not yours. You must not include this amount in your own BAS GST calculations. Review your Amazon settlement reports to identify which sales had GST collected by Amazon and exclude them from your reporting.
Can I claim GST credits on marketplace fees and shipping costs?
Yes, provided the supplier is registered for GST and has issued you a valid tax invoice. Most platform subscription fees, Australian shipping costs, packaging supplies, and professional service fees include GST that you can claim. International transaction fees and some payment processing fees may not carry GST, so check each invoice.
What BAS reporting method should an online store use?
Most e-commerce businesses benefit from accrual reporting because it aligns with how platforms report sales. Under accrual, you account for GST when the sale occurs, not when the payout hits your bank. This matches the data in your Shopify or Amazon reports and reduces reconciliation complexity. Cash reporting is simpler but can create timing mismatches with platform settlement cycles.
Do I charge GST on sales to overseas customers?
Generally, no. Exports of goods from Australia are GST-free under s.38-185 of the GST Act, provided the goods are exported within 60 days of receiving payment or the earlier of invoice date and payment. You must keep evidence of export (shipping documentation) to support the GST-free treatment. Digital products and services sold to overseas consumers have separate rules and may also be GST-free.