Online sellers have all the usual tax obligations plus a few of their own: GST on sales (and on imports), high transaction volumes, marketplace and payment fees, inventory tracking, and sometimes overseas customers. The businesses that stay on top of it use cloud accounting that connects to their sales platform. Here is a plain-English guide for e-commerce owners.
GST for online sellers
The usual rule applies: register for GST once your turnover reaches $75,000, then charge 10% GST on taxable Australian sales and lodge a BAS. There are extra wrinkles for online businesses, GST on imported goods and low-value imports, and different treatment for sales to overseas customers (exports are often GST-free). Getting your platform and accounting to record GST correctly on every channel is where most of the effort goes.
Fees, inventory and the numbers that matter
Two areas trip up online sellers:
- Marketplace, payment and shipping fees quietly eat margins. Record them properly so you know your real profit per sale, not just your revenue.
- Inventory needs tracking, both for tax (closing stock affects your taxable income) and for cash flow, since money tied up in stock is money you cannot use.
Let your systems do the work
With hundreds or thousands of transactions, manual bookkeeping does not scale. Cloud accounting linked to your store (Shopify, Amazon, eBay or your own site) and your payment provider keeps GST, fees and inventory accurate automatically, and gives you real-time numbers to make decisions. It also makes BAS and tax time straightforward instead of a scramble.
How MS Financial Services can help
We help retail and e-commerce businesses set up cloud accounting that connects to their sales channels, and handle GST and tax. To get set up, get in touch.
Frequently Asked Questions
Do I need to register for GST as an online seller?
Yes, once your turnover reaches $75,000. Then you charge 10% GST on taxable Australian sales and lodge a BAS. Sales to overseas customers are often GST-free exports.
Is there GST on imported goods?
Yes, GST can apply to imported goods, including low-value imports, with specific rules. It is worth getting the import GST treatment right so your BAS and costs are accurate.
How do I handle marketplace and payment fees?
Record them as expenses so you see your true profit per sale. Cloud accounting linked to your platform can capture them automatically.
Do I need to track inventory?
Yes. Closing stock affects your taxable income, and unsold stock ties up cash. Inventory tracking matters for both tax and cash flow.
What is the best accounting setup for e-commerce?
Cloud accounting connected to your store and payment provider, so GST, fees and inventory are captured automatically and your numbers are always current.