Running an online business in Australia—whether you sell on Amazon, Shopify, eBay, or your own website—means staying on top of your GST obligations. If you’re registered for GST, claiming GST credits on eligible business expenses can significantly reduce how much you owe the ATO each quarter. It also improves your cash flow and ensures your online business stays compliant.
GST and BAS Basics for Australian Online Sellers
If your online sales have passed the $75,000 annual turnover threshold, you’re required to:
- Register for GST
- Charge 10% GST on most local sales
- Lodge a Business Activity Statement (BAS), typically every quarter
You can then claim GST credits on eligible expenses that include GST. This is essential for managing your profit margins as an online seller
eCommerce Expenses You Can Claim GST On
As an eCommerce seller registered for GST, you’re generally entitled to claim GST credits on business purchases, provided your supplier is also registered and the invoice includes GST. These expenses must be directly connected to how you run and grow your small online business.
Many day-to-day operational costs may qualify—such as those related to managing your website, promoting your products, handling orders, or keeping your backend systems in order.
To ensure you’re meeting ATO requirements, keep detailed records and valid tax invoices for every claim. This helps support your BAS reporting and keeps your GST credits accurate and compliant.
eCommerce Expenses What You Can’t Claim
Not every business-related purchase qualifies for GST credits. In many cases, you might incur expenses while running your online store that aren’t eligible to be claimed in your BAS.
Common reasons include suppliers who aren’t registered for GST, purchases used partly or entirely for personal purposes, or services billed from overseas without Australian GST applied. Additionally, expenses that don’t come with valid documentation—such as proper tax invoices or customs paperwork—can’t be included in your GST claims.
To stay compliant, review all invoices carefully and make sure your records clearly show which expenses are eligible and which are not.
Need Help With Your eCommerce GST and BAS?
If you’re unsure what you can and can’t claim, or you’re spending hours manually sorting receipts, contact our friendly team and we’ll be happy to help you.
About Chan & Naylor
Established in 1990, Chan & Naylor has been a trusted partner for thousands of businesses and investors across Australia. Based in Sydney, we provide expert accounting services tailored to your needs. Choosing Chan & Naylor means you’re not just selecting a service provider; you’re gaining a partner aligned with your business goals. You’ll have access to a dedicated client manager supported by a team of accountants that specialises in business tax and investments. Contact us today so we can discuss how we can help you.
Disclaimer
This article serves as general information only and may not account for the unique circumstances of individual readers. For personalised and strategic solutions tailored to your specific situation, we invite you to seek professional advice from Chan & Naylor. Our highly experienced team is dedicated to helping you navigate the complexities of Australian taxation, ensuring that your financial strategies align with the latest regulations. Contact us today to embark on a path of informed and customised tax planning for your property investments.
