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.
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.
Up until working with Casey, we had only had poor to mediocre experiences outsourcing work to agencies. Casey & the team at CJ&CO are the exception to the rule.
Communication was beyond great, his understanding of our vision was phenomenal, and instead of needing babysitting like the other agencies we worked with, he was not only completely dependable but also gave us sound suggestions on how to get better results, at the risk of us not needing him for the initial job we requested (absolute gem).
This has truly been the first time we worked with someone outside of our business that quickly grasped our vision, and that I could completely forget about and would still deliver above expectations.
I honestly can't wait to work in many more projects together!
Disclaimer
*The information this blog provides is for general informational purposes only and is not intended as financial or professional advice. The information may not reflect current developments and may be changed or updated without notice. Any opinions expressed on this blog are the author’s own and do not necessarily reflect the views of the author’s employer or any other organization. You should not act or rely on any information contained in this blog without first seeking the advice of a professional. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained in this blog. The author and affiliated parties assume no liability for any errors or omissions.