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Do I need an ABN to sell on Amazon?

Do I need an ABN to sell on Amazon?

The wait is over and Amazon has finally launched in Australia! Find out if you need an ABN to sell online.

24th November 2017

In this series, we review a range of common questions we receive regarding when it is appropriate to register for an ABN. With Amazon launching in Australia, find out if you need an ABN to sell your goods on the platform.

Amazon has finally launched in Australia. Are you viewing this as an opportunity to begin or expand your eCommerce business? Were you planning your business strategy as others refreshed the Amazon Australia page? This is the right place for you.

Do you need an ABN to sell on Amazon?

The answer to this question is based on your profit and intentions for your Amazon Store.

Are you running a business or is it a hobby? Anyone can apply for an ABN, but you will only receive one if you are entitled.

You are entitled to an ABN if you are:

  • carrying on an enterprise in Australia;
  • in the course of carrying on an enterprise make supplies connected with Australia;
  • have undertaken sufficient activities to commence an enterprise; or
  • able to demonstrate that you have a business structure is in place.

A hobby is not an activity that is considered an enterprise. However, if you have a business plan in place and carry on in a businesslike manner and records are kept it is considered an enterprise. Hence the decision will be up to you and how you conduct your Amazon Store.

It is advised to acquire an ABN due to the benefits; the ability to claim back goods and services tax (GST) credits, claim fuel tax credits you quality for, register to use the pay-as-you-go withholding system, be able to offer fringe benefits to employees, and making dealing with other businesses a smooth process. Whilst you will still need to claim profit using your Tax File Number for your hobby if you don’t have an ABN it is also a matter of being future focused and not getting caught out with tax when your “hobby” takes off.

You must register for GST if your Amazon Store makes over $75,000 in a financial year, this process will require an ABN.

If you are still unsure about whether selling on Amazon is a Business or a Hobby please refer to our legal blog on Do You Need an ABN for a Hobby?

Apply for an ABN today

Complete your ABN application in minutes.

Register an ABN today. Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents, obtaining a fixed-fee quote from our largest online network of expert lawyers or to get answers to your legal questions.

Mikail Mermi

Mikail is a Paralegal working in our content team, which aims to provide free legal guides to facilitate public access to legal resources. With a passion for increasing access to justice and how technology can enhance this, his research explores how the law is adapting to emerging technologies and how this affects consumers and businesses alike.