Depop sellers in Australia face the same tax obligations as any reseller. Here's what the ATO expects and how to stay on top of it.
Depop sellers in Australia are subject to the same ATO rules as any online reseller. The platform itself doesn't change your tax obligations — the key question is always whether the ATO classifies your activity as a hobby or a business. For fashion resellers who regularly source vintage clothing, manage a Depop shop, and sell with a profit motive, that classification is almost certainly "business."
Depop does provide a transaction history export from your account settings — but this export has a significant limitation: it doesn't clearly separate the sale price, Depop's transaction fee, shipping costs, and what you actually received. This means most Depop sellers end up doing manual calculations to figure out their net income, which is time-consuming and error-prone.
The hobby vs business distinction is particularly important for fashion resellers. If you're buying vintage pieces from markets or op shops with the specific intention of selling them on Depop, you're operating a business. That means registering for an ABN, declaring your net income, and keeping records of what you paid for each item (cost of goods), the fees Depop charges, and your postage costs.
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FAQ
If the ATO classifies your Depop selling as a business (rather than a hobby), you must declare your income and pay tax on the profit. The key factors are how regularly you sell, whether you buy stock specifically to resell, and whether you operate in a business-like manner.
It depends on how you operate. Selling a few personal items occasionally is generally considered a hobby. But if you regularly source vintage clothing to resell, maintain a shop, and sell with a profit motive, the ATO is likely to classify it as a business.
You should keep records of all sales, the cost you paid for each item, Depop's transaction fees, postage costs, and any other business expenses. Depop provides a transaction history export, but it doesn't separate all fee types — you'll need to track these separately or use dedicated software.
Depop charges a transaction fee on each sale. You can find your fee history in your Depop account, but the export doesn't clearly separate sale price, fees, and net proceeds. Using dedicated reseller accounting software like Franked makes it easy to track what Depop keeps versus what you receive.
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