Do I need an ABN to sell on Amazon? (2024 Update)

Since 2017, Amazon has been operating in Australia. As the world’s largest online marketplace, selling your goods on Amazon carries many benefits. This includes having the ability to sell your goods to a larger market, saving costs on operating your own site, and being able to access services such as Fulfilment by Amazon. In this article, we’ll explain whether you need to apply for an ABN to sell on Amazon.

Table of Contents

Australian Business Numbers (ABNs)

An Australian Business Number (ABN) is an 11-digit number which identifies Australian businesses. Every registered business in Australia is needs to have an ABN. This includes sole traders, partnerships and companies. If you’re earning income from services you provide, then it’s important to have an ABN. In fact, if your business has a turnover of $75,000 or more per year then you are legally required to have an ABN. Further, you will need to have an ABN to register for GST and PAYG.

For more information regarding ABNs, see our article What is an ABN?.

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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. To find out, ask yourself these questions:

  • Are you running a business or is it a hobby?
  • How much turnover does your venture have?
  • Will you be applying for GST or PAYG?

Anyone can apply for an ABN, however you will only receive it if you:

  • Are carrying on an enterprise in Australia
  • Operate a business that is connected with Australia
  • Have undertaken sufficient activities to commence an enterprise
  • Are able to demonstrate that you have a business structure in place

A hobby does not constitute an enterprise. However, if you have a business plan in place and carry on in a business-like 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.

Benefits

It is recommended to obtain an ABN due to the benefits. These include the ability to claim back goods and services tax (GST) credits, claim fuel tax credits you qualify for, register to use the PAYG withholding system, and be able to offer fringe benefits to employees. Further, having an ABN will make dealing with other businesses a smoother process. If you operate your business as a hobby, applying for an ABN is advantageous as you won’t end up inadvertently breaking the law if your venture takes off.

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

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