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Benefits of an ABN for Online Sellers

If you’re an online seller, it’s important to determine whether you’re running a business or just a hobby. If you’re making consistent profits and have the intention of turning your online selling into a business, then it’s time to apply for an Australian Business Number (ABN). In this article, we’ll discuss the benefits of getting an ABN when you’re online selling.

What Is an ABN?

An ABN, or Australian Business Number, is a unique 11-digit identifier that is assigned to businesses operating in Australia. It is a requirement for businesses that have an annual turnover of $75,000 or more and is used for tax and other business-related purposes.

The ABN helps to identify a business and its activities, making it easier to interact with government agencies, suppliers, and customers. It is important for businesses to maintain an up-to-date ABN registration to ensure they comply with their legal obligations.

Getting a Rebate on GST Paid on Local Purchases

If you are a business owner in Australia, you may be eligible to receive a rebate on the Goods and Services Tax (GST) paid on local purchases. To claim the rebate, you must be registered for GST and have an ABN. You can claim the GST paid on eligible purchases of goods and services that have a GST component.

To claim the rebate, you need to fill out a GST return and submit it to the Australian Taxation Office (ATO) by the due date. By getting a rebate on GST paid on local purchases, you can reduce your business expenses and improve your cash flow.

Tax Credits

To claim business expenditures when filing your next tax return, you must obtain an ABN. If you don’t have an ABN, you won’t be able to claim legal business deductions such as motor vehicle expenditures, travel expenses, operational expenses or any applicable capital expenses.

Purchasing an Australian Domain Name

To purchase a domain name ending in, and .au in Australia, you need an

ABN. On the other hand, other domains, such as .com and .org, do not require an ABN and can be acquired by just about anybody.

Benefits of registering an ABN

Whether you run your online operations as a business or a hobby, having an ABN provides you with the following advantages:

  • It enhances the legitimacy of your business to customers by including one on your tax invoices or website.

  • It allows you to claim back GST credits and will assist you in making operations with other businesses an easier experience.

  • Through having an ABN, you can offer your employees fringe benefits tax (FBT).

  • Your business will be more identifiable as having an ABN will mean your business is listed on the Australian Business Register (ABR).

  • Having an ABN will allow you to register a domain name.


Selling online is, more often than not, a business. The ATO has begun to data match numerous online marketplaces against information in people’s tax returns in the past years to ensure all relevant revenue is disclosed.

Therefore, it’s important to register for an ABN if you’re an online seller. An ABN allows you to conduct your internet business like a company and is sometimes needed by law. It also gives you access to a range of benefits, including claiming GST back on purchases, tax credits, purchasing an Australian domain name, and more.

The ECommerce Accountant is a leading business advisory firm specialising in online stores and influencers. Reach out to our trusted accountant in Australia for any accounting needs related to your eCommerce business!

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