ABN Question

Hello,I am a regular seller on ebay now and have a shop.I am going to apply for an ABN number as someone has suggested that I need too.Has anyone else applied for one,and if so can give me some general info ?


 


thanks kat

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ABN Question

cridco
Community Member

It's not a requirement that you have an ABN when you start a business. The ATO site has the best information you can get rather than anyone here. Just because you have a shop does not mean you are running a business. It's just a different means of presenting goods you have for sale. You should seek advice on turnover, and consider your line of goods. Collecting and selling, for instance can be seen as a hobby and would need to demonstrate a profit of $20,000 from memory before it is considered a business. Some of this information I have provided, I gained from my accountant ( not for selling purposes just a general accountant). Plese take this information as a general discussion rather than advice. Only you can be up to date on your particular and individual tax responsibilities.

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ABN Question

lyndal1838
Honored Contributor

You can still be running a business without making  profit, let alone $20,000.


You really need to talk to an accountant before arbitrarily deciding you need an ABN.  It can be quite expensive to register as a Sole Trader or a Company if it is not necessary.


But to answer your question...it is not difficult to do the registrations yourself rather than pay someone else to do it.


Check out the ATO website and the government Business site...they give you all the information you need.

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ABN Question

It is not expensive to register as a sole trader - there is no cost involved.


 


You can apply on-line for an ABN  - easy peasy - the instructions are quite straight forward - and the requirements are outlined in dot point format and go through a test to see if you are "entitled" to an ABN.


 


I always think you are better off with an ABN as if you wish to access the benefits of some business services, say for example an Australia Post account, you require an ABN to do so.


 


After you have your ABN you can then register a business name, I think costs about $35 per annum.


 


 


 


 


 


 

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ABN Question

Hi forever,


 


Below is a link to the Australian Business Register where you can read further information as to whether you are entitles to register for an ABN:


 


https://abr.gov.au/ABRWeb/Homepage.aspx?Task=08cda5d2-4f54-4d80-8d2e-80c50628a91f&NavGraph=Home&View...


 


Registration is free and it can be done online very quickly and easily as has been suggested.


 


If you have any questions you can either call your accountant, or click on the "contact us" tab in the link above to get further information for free.


 


If you want to register a business name that will cost you some money and can also be done online via the ASIC website (see link below)


 


https://www.asic.gov.au/asic/asic.nsf/byheadline/Registering+a+business+name?openDocument


 


Please do not give out finacial advice on the boards stating that if you earn less than $20,000 it is not considered a business. That is completely false. As has also been stated you can operate at a loss and still be running a business. If you buy and sell on ebay for the purposes of trying to make money you are running a business irrespective of how much you make from the activity. Whether there ia a tax liability is another matter again.


 


I understand that we all try to help each other out on the boards but it worries me when well intended advice is wrong and if someone relies on it they could end up in trouble because they haven't done the right thing.


 


The ATO can be called for advice on tax matters and have a wealth of information on their website. You can also order publications from them with basic information on running a small business, record keeping etc.


 


The best thing to do if you are unsure is to contact the relevant government agency for some good free advice, or if you prefer, speak to an accountant.

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ABN Question

chezzy
Community Member

Is the shop/OP in Australia? Not sure how things work if it is from outside Australia


(my query stems from the fact I noticed the ebay items located in China?)

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