Do you need to charge GST on a Shopify store in Australia?

When does an Australian Shopify store have to register for GST?

For a business in Australia, registration is compulsory once your GST turnover reaches A$75,000 (A$150,000 for a non-profit), unless the ATO is satisfied your projected GST turnover will be less than the threshold. GST turnover is total business income, not profit, minus items such as the GST in your sales, over the current month plus the previous 11, or plus the next 11 projected.

Below the threshold, registering is optional unless your business fits another ATO category, such as claiming fuel tax credits. A supplier that's neither registered nor required to be can't charge GST.

Not registered yet? Check each month, and register within 21 days of going over. Missing that window can cost you:

How do you start charging GST in Shopify?

The ATO needs your ABN before you register; Shopify then asks for the tax number your tax authority issues, which Basic Tax, its service for Australia, needs to calculate tax.

1. If Australia isn't in a shipping zone yet, add it first, or Shopify won't let you add the registration.
2. In Manage sales tax collection, click Australia.
3. Click Collect sales tax.
4. Enter your tax number in Tax number, or leave the field blank if you've applied and your number hasn't arrived yet.
5. Click Collect tax.

GST is 10% on most goods and services sold or consumed in Australia, and the ACCC says prices you show consumers must include it.

What stays with you after you register

Shopify's help leaves charging the correct rates, and filing and remitting, to you, and suggests checking with the tax authority or a tax professional. Once registered, you lodge a business activity statement (BAS) and pay GST on your taxable sales when you lodge it.

Selling into Australia from overseas instead? Read whether a non-resident Shopify store needs to charge Australian GST.