Australian GST on Gumroad
If you live in Australia and buy/sell things, chances are GST is a real headache. The question is, how do you apply it to sales made on Gumroad?
The simple answer: You don't have to worry about it! Just like EU VAT, Gumroad now automatically collects and remits AU GST on all sales made to customers in Australia. No action required, no settings to toggle. It just happens, leaving you to create and sell awesome products!
Irrespective of whether you are a creator from Australia or somewhere else, if someone in Australia buys your product(s), we will charge 10% GST on top of the sales price and remit it to the Australian Taxation Office (ATO) on your behalf.
The checkout window will look like this when we detect a buyer’s Australian IP address:
Physical products and Custom Delivery products are exempt from AU GST.
Also, customers with a valid Australian Business Number (ABN) will have the option to enter their ABN during checkout and get a GST exemption. Buyers can also refund the GST post-purchase by generating an invoice for themselves.
Your ABN ID will be visible in the generated invoice if you’ve availed a GST exemption. In case of a refund, it will be credited back to your payment instrument within 3-5 business days.