Shopify makes selling easy — but tax compliance is your responsibility. Here's what you need to know as an Australian Shopify seller.
If you're operating a Shopify store as a business — selling products with the intent to profit — you need an ABN. Unlike selling a few personal items, running a Shopify store signals clear commercial intent. Your ABN should be set up before you make your first sale, and your business details should be accurate on your tax records from the start.
Once your annual turnover hits $75,000, GST registration is compulsory. Shopify makes it relatively straightforward to charge GST on your products — you can configure Australian tax rates in your store settings. Once registered, you'll charge 10% GST on sales to Australian customers and lodge quarterly BAS returns.
GST registration also means you can claim back GST on your business expenses, including your Shopify subscription, apps, and advertising costs. For many Shopify sellers turning over between $50-75k, voluntary registration can actually save money through input tax credits.
Shopify charges a monthly subscription plus transaction fees on each sale. If you use Shopify Payments, the transaction fee is lower than using external payment gateways. Either way, every fee Shopify charges is a deductible business expense. The challenge is tracking them accurately across hundreds of transactions per month.
Other deductible costs for Shopify sellers include:
Your Shopify income must be declared in your tax return. This is your total gross sales, not just the net amount after Shopify takes its fees. You then claim the fees as deductions separately. Shopify provides reports that show gross sales, refunds, and net sales — but you'll still need to reconcile these against your bank account to ensure nothing is missed.
For resellers using Shopify alongside other platforms like eBay or Depop, consolidating income from multiple sources is essential. Each platform counts as a separate income stream, but they all feed into one tax return. See our guide to reseller bookkeeping for tips on managing multi-platform accounting.
Shopify integrates with most major accounting platforms through apps and plugins. However, the quality of these integrations varies. Some sync every transaction automatically; others only sync daily summaries. For resellers who need per-item COGS tracking, most standard Shopify-to-accounting integrations fall short. Purpose-built reseller accounting tools are often a better fit.
Franked is built specifically for Australian resellers. Join the waitlist to be first when we launch.