GST on your Shopify store: an Australian guide

The short answer: GST is a 10 % tax on most goods and services sold in Australia, and the Australian Taxation Office requires you to register once your GST turnover reaches A$75,000. The real work happens before you touch Shopify's settings: you have to decide which sales are yours to tax. Direct Shopify orders are yours, marketplace orders usually aren't, exports are GST-free within 60 days, and dropshipping depends on who the supplier of record is. This guide walks through that classification, the Shopify tax settings that follow, and the quarterly BAS reconciliation that keeps you out of trouble.

If you're setting up a store for the first time, our Shopify Australia: set up your store step by step guide covers the broader admin walkthrough. This one narrows to a single question: which sales carry GST, and how do you get Shopify to reflect that correctly.

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Shopify plans, pricing and features change; always verify the current details on shopify.com before deciding.

Most Australian guides jump straight to the settings menu. That's the wrong order. No menu path or accounting app can fix a wrong obligation, so we start with the classification that determines every other answer.

GST and the A$75,000 line: the basics you can't skip

GST is a broad-based tax of 10 % on most goods, services and other items sold or consumed in Australia, as the Australian Taxation Office sets out. Registration becomes compulsory once your GST turnover reaches A$75,000, or A$150,000 for non-profits. Below that line, charging GST is not just unnecessary. It's not allowed.

The threshold is gross turnover, not profit. GST-free sales still count toward it. So if you sell A$70,000 of taxable goods and A$10,000 of GST-free exports, your turnover is A$80,000 and you're over.

Once you cross the line, the ATO gives you 21 days to register. Registration backdates to the day you crossed the threshold, not the day you got around to it. You owe GST on sales from that earlier date.

Voluntary registration below A$75,000 is an option. The trade-off: you must charge 10 % on taxable sales, but you can claim input tax credits on business purchases including your Shopify subscription. For low-margin stores with significant expenses, that can net out in your favour. For a lean operation with few costs, it's extra paperwork for little return.

Australian consumer prices are GST-inclusive by default. The Australian Competition and Consumer Commission expects the prominently displayed price to be the total the consumer pays. In Shopify, that means selecting "All prices include tax" for your Australian market — the standard B2C setup. Tax-exclusive pricing is sometimes used for B2B, but it requires separate configuration.

Is that sale even yours? The supplier-of-record test

This is the organising question of the whole guide. Before you set a single rate in Shopify, work out which sales are legally yours to tax. Get this wrong and no settings menu can save you.

Our take: The supplier-of-record column is where most Australian stores come unstuck. Our call is that if you sell through Amazon AU or eBay AU and also direct on Shopify, you must split those channels on your BAS. The marketplace-collected GST is not yours to remit, and double-reporting it is one of the costliest mistakes we see. For dropshipping, the contract determines everything: if the overseas supplier bills you and you bill the customer, you're the supplier of record and GST is yours.

Direct Shopify sales are straightforward. You're the seller, the customer is in Australia, and 10 % GST applies. You collect it, hold it, and remit it on your BAS.

Marketplace orders are different. When you sell through Amazon AU or eBay AU, the marketplace is generally the operator responsible for collecting and remitting GST on those transactions. The GST they collect does not appear on your BAS as GST on sales. You still report the revenue, but the GST line is zero.

Dropshipping is where it gets messy. If an overseas supplier ships directly to your Australian customer and the supplier invoices the end buyer, the supplier may hold the GST obligation. If you invoice the customer and the supplier invoices you, you're the supplier of record. Read your supplier contract before you assume anything.

Export sales to overseas customers are GST-free, with conditions we cover next.

Set the 10 % GST rate in Shopify, in the right order

Once you've classified your sales, the Shopify settings follow. The menu path is Settings > Taxes and duties, then select Australia and set the country rate to 10 %. For state and territory rates, set each to "added to 10 % federal tax" — not a separate percentage, because Australia doesn't have state-level GST.

Here's the order that matters:

1. Confirm your GST registration with the ATO before changing any setting.
2. In Settings > Taxes and duties, add Australia and set the rate to 10 %.
3. Set each state and territory to "added to 10 % federal tax" (zero additional).
4. Under tax collection, select "All prices include tax" for Australian customers.
5. Create a tax override at 0 % for any GST-free product collections.
6. Place a test order to an Australian address and confirm 10 % is calculated.
7. Place a test order to an overseas address and confirm 0 % is applied.

If you're weighing plans, our How much does Shopify cost in Australia? guide breaks down the monthly fees. The tax settings are identical across plans, so plan choice doesn't change your GST configuration.

For digital products sold to Australian customers, GST applies — they're not in the GST-free categories. The same 10 % rate and the same Settings > Taxes and duties path apply.

Tax overrides let you set specific collections to 0 %. Use these for GST-free exports or any product that falls under an ATO exemption. The override tells Shopify not to add GST at checkout, regardless of the customer's location.

Exports and the 60-day rule: when the 10 % doesn't apply

Exported goods are GST-free if they leave Australia within 60 days of payment or invoice, as the ATO's exports guidance states. That 60-day window is the critical test. Miss it and the sale becomes taxable.

Freight on GST-free exports is generally GST-free too. So if you charge postage on an export order, that freight component is also 0 %.

Proof matters. Keep tracking numbers, carrier documentation, and customs declarations that show the goods actually left Australia. The ATO can ask for this evidence years later.

For imported goods, the rules shifted in July 2018. GST applies to low-value imported goods with a customs value of A$1,000 or less, as the ATO's LVIG page explains. If you import stock and sell it locally, you may be able to claim input tax credits on the GST paid at the border.

Shopify's duties and import tax calculator, enabled for all plans from 2 February 2025 per Shopify's changelog, helps with international checkout calculations. Shopify charges a 0.5 % transaction fee on orders where duties and import taxes are calculated, as of 5 February 2025.

International tax obligations — EU VAT, NZ GST, US sales tax — are separate from Australian GST. Each may require its own registration. Don't assume your Australian GST setup covers overseas obligations.

Your own Shopify bills include GST — claim it back

Shopify charges 10 % GST on its subscription plans and transaction fees for Australian merchants. If you're GST-registered, those charges are input tax credits you can claim on your BAS.

This is the step most guides bury. Your Shopify plan, app subscriptions, and processing fees all carry GST. Over a year of trading, those credits add up and reduce your net GST payable.

The claim is straightforward. Pull the GST-inclusive invoices from your Shopify admin, record the GST component, and include it as an input tax credit on your BAS. If you use a bookkeeping integration like Xero or A2X, these invoices can be imported automatically.

Not registered for GST? You can't claim input tax credits. Another reason to weigh voluntary registration if your expenses are significant. If you're also setting up Shopify Payments in Australia, the processing fees on those transactions carry the same claimable GST.

Reconcile once a quarter, lodge before the deadline

Registered businesses lodge a Business Activity Statement, usually quarterly. Your BAS net amount is GST collected on sales minus input tax credits on business purchases. That net figure is what you pay or receive from the ATO.

Here's a suggested BAS timeline you can adapt:

Suggested quarterly BAS rhythm (our template):

• Week 1 after quarter ends: pull Shopify tax report (Reports > Finances > Taxes).
• Week 2: cross-check against Xero or A2X, reconcile refunds and chargebacks.
• Week 3: confirm input tax credits including Shopify fees.
• Week 4: lodge BAS and pay the ATO before the due date.

The ATO moved some businesses to monthly GST reporting from 1 April 2025. If you're on monthly reporting, the BAS is due by the 21st of the following month. Quarterly lodgement due dates are typically the 28th of the month after the quarter ends.

Chargebacks affect GST in the period they're processed. If a customer disputes a charge from last quarter, the GST adjustment goes on the current BAS, not the original one. Your accounting app should handle this, but verify the timing.

Shopify's tax reports (Reports > Finances > Taxes) give you the GST collected figure, but cross-check against your accounting records and refunds. Shopify doesn't lodge your BAS or act as a full accounting system. You remain responsible for ATO reporting.

Apps like A2X, Xero, MYOB, LinkMyBooks, and Amaka automate reconciliation by mapping Shopify transactions to the correct BAS labels. They reduce manual error but don't replace understanding your obligations.

The ATO estimated the GST gap at A$8.1 billion in 2022–23, or 9.1 % of total theoretical tax, per the ATO's tax gap overview. That gap is why data matching and enforcement on e-commerce sales are increasing.

Where Australian Shopify stores trip over GST

The mistakes are predictable because they all trace back to skipping the supplier-of-record test.

Missed registration is the first. You cross A$75,000 and don't register within 21 days. The ATO backdates you, and you owe GST on sales you never collected. The general interest charge for July–September 2026 runs at 11.43 % annually, per the ATO's GIC rates page. That compounds daily.

Charging GST on exports is the second. A sale to a customer in New Zealand isn't taxable if the goods leave within 60 days, but if you haven't set the override, Shopify adds 10 % and you've overcharged. Refunding the GST is a manual process.

Skipped input tax credits are the third. Shopify fees, app subscriptions, and business purchases all carry GST you can claim. Miss them and you're paying the ATO more than you owe.

No reconciliation is the fourth. Shopify's tax report and your BAS don't always match because of refunds, chargebacks, and timing differences. Reconcile every quarter or the errors compound.

The penalty regime is steep. The ATO's penalty framework sets the base penalty at 25 % of the shortfall for failure to take reasonable care, 50 % for recklessness, and 75 % for intentional disregard. On top of the shortfall, plus interest.

None of these are catastrophic on their own. Together, they turn a manageable quarterly task into a debt that wipes out a quarter's profit.

Frequently asked questions

Do I need to charge GST if I sell through Amazon AU or eBay AU?

Generally no. The marketplace is typically the operator responsible for collecting and remitting GST on those sales. You report the revenue on your BAS but the GST line is zero — the marketplace-collected amount is not yours to remit. Check the marketplace's own seller documentation for the exact treatment, as the ATO's marketplace rules shifted responsibility to the platform operator for many product categories.

If I dropship from overseas, who is the GST supplier of record?

It depends on your contract with the supplier. If the supplier invoices your customer directly, the supplier may hold the GST obligation. If you invoice the customer and the supplier invoices you, you're the supplier of record and 10 % GST applies. Read the dropship agreement before you configure Shopify — the contract, not the settings, determines the answer.

How do I register for GST for my Shopify store?

Register through the ATO's online services via myGov or a registered tax agent. You'll need your Australian Business Number (ABN), an estimate of your current and projected GST turnover, and the date you want registration to start. The ATO processes most applications within a few business days, and you'll receive a confirmation you can then use to update your Shopify tax settings.

Can I show GST-inclusive prices to consumers but GST-exclusive to wholesale buyers?

Yes, but it requires separate configuration. Set your default market to GST-inclusive ("All prices include tax"), then create a customer group or market for wholesale with tax-exclusive pricing. Apply a customer tag to wholesale accounts so Shopify calculates GST on top of the listed price at checkout. Test both flows before going live.

What happens if the ATO moves me to monthly GST reporting?

Monthly BAS is due by the 21st of the following month, giving you roughly three weeks to reconcile and lodge. The workflow is the same — GST collected minus input tax credits — but the cadence is tighter. Monthly reporters often need automated reconciliation through Xero or A2X to meet the deadline, because manual reconciliation at that frequency is error-prone.

How do chargebacks affect my GST?

A chargeback reverses the original sale, so the GST you collected on that transaction needs to be adjusted. The adjustment goes on the BAS for the period the chargeback is processed, not the period of the original sale. If the chargeback happens in a later quarter, you'll reduce your GST payable for that current quarter rather than amending the earlier BAS.

Sources

1. Australian Taxation Office, "How GST works". https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/how-gst-works — checked on 25 August 2026
2. Australian Taxation Office, "Registering for GST". https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst — checked on 25 August 2026
3. Australian Taxation Office, "Exports and GST". https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/australians-doing-business-overseas/exports-and-gst — checked on 25 August 2026
4. Australian Taxation Office, "Overview of tax gaps". https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/tax-gap/australian-tax-gaps-overview/overview — checked on 25 August 2026
5. Australian Taxation Office, "Penalties for making false or misleading statements". https://www.ato.gov.au/individuals-and-families/paying-the-ato/interest-and-penalties/penalties/penalties-for-making-false-or-misleading-statements — checked on 25 August 2026
6. Australian Taxation Office, "General interest charge (GIC) rates". https://www.ato.gov.au/tax-rates-and-codes/general-interest-charge-rates — checked on 25 August 2026
7. Australian Taxation Office, "GST on low value imported goods". https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/gst-for-non-resident-businesses/gst-on-low-value-imported-goods — checked on 25 August 2026
8. Shopify Inc., "Shopify duties and import taxes — Now available for all Shopify plans". https://changelog.shopify.com/posts/shopify-duty-calculator-now-available-for-all-shopify-plans — checked on 25 August 2026