Do I Need an ABN to Sell on Amazon Australia? Amazon's Rule vs the ATO and ABR Rules

Amazon does not require an ABN to register as an individual seller on Amazon.com.au: you select "None, I am an individual" as the business type, and you enter your ABN or ACN in the company registration field only if you have one. That is Amazon's rule. The ATO and the Australian Business Register have a different one: you can only get an ABN if you are running a business or other enterprise. So the real question is whether your selling is a business. This page is general information, not tax or legal advice.

What does Amazon require?

Amazon's registration form asks for a company registration number, and says it "can be your Australian Business Number (ABN) or your Australian Company Number (ACN)". An individual or unincorporated seller chooses "None, I am an individual" instead. Business sellers can use an ABN or ACN extract as their business verification document, and GST registration is another accepted option.

Amazon's page asks for tax information at registration. It does not say what Amazon does with an ABN once it is on file, and it does not say whether supplying one changes how GST applies to your fee invoices. Amazon publishes fee invoice details inside Seller Central; confirm with the ATO or a registered tax agent.

What do the ATO and ABR require?

An ABN is an 11-digit number from the Australian Business Register. It is free to register through the ABR, and business.gov.au says "To get one you need to be running a business or other enterprise" and "Not everyone needs an ABN". That means:

• If you are running a business, you are generally entitled to an ABN. Whether you must have one is a separate question; ask the ATO.
• If you are selling as a hobby, you are not entitled to one.
• Amazon accepting you without an ABN says nothing about whether the ATO treats you as in business.

Do not apply for an ABN just to get past a form. The entitlement test is the ABR's, not Amazon's, so apply only if you are running a business.

Is your Amazon selling a business or a hobby?

Business.gov.au lists the markers of a business: you intend, or genuinely believe you will make, a profit; you have registered a business name or obtained an ABN; you repeat similar activities; the size or scale is consistent with other businesses in the industry; and the activity is planned, organised and carried out in a businesslike manner. A hobby is "a pastime or leisure activity conducted in your spare time for recreation or pleasure".

No single factor decides it. Someone buying stock from a supplier, listing it repeatedly on a Professional plan and advertising it will usually look like a business. The longer test is on the hobby vs business page. Decluttering your own household items is a different thing from running a store, but the line is for the ATO to draw on your facts.

When do you also need GST registration?

An ABN and GST are separate. You must register for GST if your GST turnover is A$75,000 or more, and you must do so within 21 days of becoming aware that your GST turnover will exceed the threshold; below it registration is optional. The online registration route assumes you already have an ABN. So if you expect to pass the threshold, you will need an ABN first. See GST for Amazon sellers and the GST glossary entry.

Amazon quotes its fees excluding GST, and it applies Australian GST to most items sold on Amazon.com.au "if it is relevant to the sale". Amazon does not publish whether it adds GST to your seller fees.

What happens if you sell to businesses without an ABN?

Amazon payouts come from Amazon, so this mainly matters if you also sell to other businesses directly. Business.gov.au says that without an ABN or a "Statement by a supplier" form, buyers must withhold 47% of payments. That is a rule for payments between businesses, and it is another reason to settle your status. Ask the ATO how it applies to you.

Which entity should hold the ABN?

A sole trader, a partnership and a company each hold their own ABN, and Amazon's form asks for the company registration number of whoever is registering. Business sellers also have to show proof of authorisation to represent the company, and proof of address in the business or entity name. If you trade through a company, the Amazon account should be in the company's name. Choosing a structure has tax, liability and cost consequences, so take it to a registered tax agent or accountant before you register, not after.

What records should you keep from your first sale?

Whatever your status, keep the paperwork: Amazon fee invoices, settlement reports, supplier invoices, import and freight costs, GST records and bank statements. Professional sellers get more selling reports, including API and report access. Records make it far easier for an accountant to tell whether you are in business, to complete a BAS and to claim what you are entitled to. The glossary entry on BAS explains the form.

How do you apply for an ABN?

You apply through the Australian Business Register, free of charge. Use the official ABR or business.gov.au pages, because paid third-party sites charge for a free service. See the ABN glossary entry for the basics. You will need your personal details, your business structure and a description of your activity. After you have the ABN, update your Amazon account's business information if you registered as an individual first, or ask Seller Support how to do it in Seller Central.

FAQ

Do I need an ABN to sell on Amazon Australia? Amazon does not require one if you register as an individual. The ABR says you are entitled to one only if you are running a business or enterprise. If you buy stock to resell, you are likely running a business.

Can I sell on Amazon Australia without an ABN as a hobby? Amazon's registration allows individuals to register without one. Whether the ATO treats you as a hobbyist depends on the business-or-hobby factors, not on Amazon's form.

Is an ABN the same as GST registration? No. GST registration is a separate step with its own threshold. You must register once your GST turnover is A$75,000 or more, and registering online assumes you already hold an ABN.

What does an ABN cost? Nothing. It is free to register through the Australian Business Register, so avoid any site that charges a fee to lodge the application for you.

Do I pay tax if I have no ABN? Possibly. Income from selling can be assessable whether or not you hold an ABN. Ask the ATO or a registered tax agent. See income tax for Amazon sellers.

Should I use my personal ABN or a company ABN? A sole trader's ABN and a company's ABN identify different entities. Which suits you is a question for a registered tax agent or accountant. The Amazon account should be registered in the name of the entity that will trade.

Next step

Decide whether your selling is a business, check the ATO's guidance and then register your Amazon account to match. When you are ready to set up, follow the registration walkthrough. Blooprint, an Amazon SPN verified partner, manages Amazon.com.au accounts remotely from Bengaluru through Amazon account management for Australian sellers. The Australia hub has the rest of the series.