In this series, we review a range of common questions we receive regarding when it is appropriate to register for an ABN. Users are often unsure whether or not they need an ABN when selling online and the consequences of not getting this right.

Do you need an ABN to Sell Online?

If you are selling goods/services online, you need to decided whether you are doing so as a hobby or as a business. In simple terms, if you are operating as a business and the main reason behind selling the goods/services is to make profit then you MUST have an ABN. However if selling your good/services is a pastime or leisure activity then an ABN is not required.

Another major point to consider is GST. If your turnover is more than $75,000 a year (before GST), you are required to register for GST, and to do that you need an ABN. Thus if you turnover is more than $75,000 you are required to get an ABN.

Regardless of your online shop being a business or a hobby LawPath advises you to register for an ABN as it enhancing the legitimacy of your business by including an ABN on your tax invoices and/or website and allows you to to claim back GST credits and just generally assists in make dealing with other businesses a much smoother task. Make sure to check your eligibility before applying for an ABN.

For ABN information about selling on Etsy, eBay or Facebook please refer to our other legal guides.

Unsure where to start? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

Dominic Woolrych

Dominic is the CEO of LawPath, dedicating his days to making legal easier, faster and more accessible to businesses. Dominic is a recognised thought-leader in Australian legal disruption, and was recognised as a winner of the 2015 Australian Legal Innovation Index.