GST on dropshipping on ebay.com

Hi, does anyone knows if i need to pay GST on income that is made on ebay.com as a dropshipper ? I've never sold anything in australia and never charged GST.

 

my turnover was over $75K

 

can anyone recommend a good e-commerce accountant to deal with this situation ?

thanks.

Off the top of my head, as an Australian resident, you would not be liable for GST on items that have never been in Australia. Assuming you are not dropshipping from Australia. Unlikely, given very little is manufactured (except submarines) here anymore.

 

You would, however, be liable for income tax.

for some strange reason my tax agent told me today i will have to pay GST and that freaked me out, i'm almost sure that i don't have to pay GST on goods that are not sold in australia, do you know any accountant that can handle this?

 

I'm an australian citizen, I dropship from amazon U.S to ebay U.S

i think you may find the "S" part of GST could apply. Goods and SERVICES Tax. Being an Australian resident you are providing a service.

I agree with bsal....you are providing a service.

Any good accountant should be able to advise you.

ok, so i provide a service, but isn't gst is for goods and services within australia? when all the services and goods were purchased in the U.S do i still have to pay GST on them?

You are earning an income in Australia by providing a service.

Anonymous
Not applicable

Get a second opinion from another accountant, or, for free call the ATO.

Most likely GST is not required but Income tax would be.

There is some info here: https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-not-to)/taxable-sales/#SalesConnect...

 

 

There is a clause that states the services are GST free if the recipient is outside Australia but there are strict rules.

I would ring the ATO to see if you do qualify for providing a GST free service.

Having quickly read the ATO site on GST free services the OP would be lioable for GST.

1.

Sales in the course of operating your business

For a sale to be taxable, you must provide the goods or services as part of conducting your business.

 

2.

Sales connected with Australia

GST applies to sales that are connected with Australia, whether they are goods, property or other things

 

3.Things other than goods or property

the seller makes the sale through a business they carry on in Australia