Are you considering starting an Etsy shop but unsure if you need an Australian Business Number (ABN)? If so, you’re not alone. Many Etsy sellers in Australia wonder whether an ABN is necessary to sell on the platform.
In this blog post, we’ll explore the role of an ABN in selling on Etsy and discuss whether or not it’s necessary for your business.
So if you’re wondering whether you need an ABN to sell on Etsy, keep reading! We’ve got all the information you need to make an informed decision for your business.
Do you Need an ABN to Sell on Etsy?
You may not need an ABN (Australian Business Number) to sell on Etsy if you are operating your business as a hobby or if your revenue is below $75,000. However, there are still a few things to consider when selling on Etsy without an ABN.
First, it’s essential to understand the difference between a hobby and a business. Generally, a hobby is something you do for enjoyment or leisure, while a business is an enterprise run to make a profit.
If you are selling items on Etsy as a hobby, you may not need to register your business or obtain an ABN, but you may not be able to claim any business-related expenses on your taxes.
Similarly, if your Etsy business generates less than $75,000 in revenue annually, you may not be required to register for an ABN. However, it’s important to note that this threshold can vary depending on the specific circumstances of your business, so it’s a good idea to check with the Australian Taxation Office to confirm whether or not you need an ABN.
On the other hand, if you are operating a business on Etsy – even if it’s a small or part-time venture – and your revenue is above the $75,000 threshold, it’s generally a good idea to obtain an ABN. It can help to legitimize your business and make it easier to open a business bank account, apply for business loans, and claim business-related expenses on your taxes.
So if you’re selling on Etsy and you’re not sure whether you need an ABN, it’s a good idea to consider whether your activity on the platform is more akin to a hobby or a business and whether or not your revenue is above the $75,000 threshold.
If you’re operating a hobby and your revenue is below the threshold, you may not need an ABN, but if you’re operating a business. Your revenue is above the threshold; obtaining one is generally a good idea.
