GST for Shopify: what Australian online stores need to know

GST Register
If you run an online store using Shopify, understanding how GST applies is essential. Between platform fees, customer sales, digital services and overseas transactions, GST can quickly become confusing.
This guide explains how GST works for Shopify merchants in Australia, using Australian Taxation Office (ATO) guidance and Shopify’s own billing rules, so you can stay compliant and avoid surprises.
What is GST and when does it apply?
Goods and Services Tax (GST) is a 10% tax applied to most goods and services sold in Australia.
If your Shopify store’s GST turnover (gross sales, not profit) reaches $75,000 in a 12-month period, registration is compulsory.
Do Shopify store owners need to register for GST?
You must register for GST if:
  • Your Australian GST turnover is $75,000 or more
  • You expect to exceed $75,000 in the next 12 months
  • You choose to register voluntarily (optional below the threshold)
Once registered, you must:
  • Charge GST on taxable sales
  • Lodge Business Activity Statements (BAS)
  • Pay GST collected, minus any GST credits

How GST applies to Shopify fees

Shopify is a non-resident supplier providing digital services to Australian businesses. Under Australian GST law, GST applies to Shopify subscription fees and transaction fees charged to Australian merchants.
Key points for Shopify billing:
  • Shopify charges 10% GST on subscription and eligible fees for Australian stores
  • GST appears on Shopify invoices
  • GST paid to Shopify may be claimable as a GST credit if you are GST-registered

GST on Shopify sales to customers

How GST applies to your sales depends on where your customer is located and what you are selling.
GST treatment by customer type
Customer location
GST applies?
Notes
Australian customers
Yes
10% GST on most taxable sales
Overseas customers
Usually no
Exports are generally GST-free
Low-value imported goods
Yes
Special rules may apply
Digital products to Australians
Yes
GST applies if customer is in Australia

Setting up GST correctly in Shopify

Shopify allows you to configure GST settings so tax is calculated automatically at checkout.
Best-practice setup steps:
  • Confirm your store location is set to Australia
  • Enable GST collection in Shopify tax settings
  • Ensure product prices are marked as GST-inclusive or exclusive
  • Regularly review Shopify tax reports against your accounting records
Shopify calculates GST, but you remain responsible for reporting and lodging correctly with the ATO.

Claiming GST credits for Shopify expenses

If you are registered for GST, you may be able to claim GST credits for:
  • Shopify subscription fees
  • Shopify transaction fees
  • Australian business expenses used in running your store
To claim credits, you must:
  • Hold valid tax invoices
  • Use the expenses for your business
  • Lodge BAS accurately and on time

Common GST mistakes Shopify sellers make

  • Forgetting to register after crossing $75,000 turnover
  • Charging GST incorrectly on exports
  • Not claiming GST credits on Shopify fees
  • Relying on Shopify reports without reconciliation
  • Missing BAS lodgement deadlines

Final thoughts

Shopify makes selling online easier, but GST obligations still sit with you as the business owner. Getting GST right from the start can save time, cash flow stress and ATO issues later.
GST Register can help you get your GST registration, so your online store stays compliant as it grows.
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