Etsy gives creative sellers a way to reach buyers worldwide. You can list handmade goods, vintage items, and craft supplies with little setup. But many sellers in Australia ask a common question: do you need an ABN to sell on Etsy?
The answer depends on how the Australian Taxation Office (ATO) views your shop. Some sellers run a hobby. Others run a business. Each has different tax rules.
What Is an ABN?
An ABN is an Australian Business Number. It is an 11-digit number that identifies your business to the government. It is free to apply for and takes only minutes online.
With an ABN, you can:
- Claim goods and services tax (GST) credits.
- Avoid having other businesses withhold tax from payments.
- Open a business bank account.
- Show customers that you run a legitimate business.
Does Etsy Require an ABN?
Etsy does not require an ABN to open a shop. You can create listings and sell without one. This rule applies whether you live in Australia or anywhere else.
The ATO, not Etsy, decides if you need an ABN. If your shop is a business, you must have one. If it is a hobby, you do not.
Hobby or Business?
The ATO looks at intent, activity, and scale. Ask yourself a few questions:
- Do you create products mainly for fun or to make profit?
- Do you sell items often, or only once in a while?
- Do you keep records, track sales, and market your shop?
- Do you invest time and money to grow your sales?
A hobby shop lists products for enjoyment. A business shop sells regularly with the goal of income.
When You Need an ABN
You need an ABN if your shop is set up to earn. That means:
- You create items with the aim of selling them.
- You promote your shop on social media or through ads.
- You keep accounts, track expenses, and monitor growth.
- Your sales are consistent, not occasional.
You also need an ABN if your sales and other income approach the GST threshold of $75,000 a year. At that level, you must register for GST as well.
When You Do Not Need an ABN
You do not need an ABN if you only sell as a hobby. For example:
- You make a few items for fun and list them occasionally.
- You sell gifts or personal creations without aiming for profit.
- You do not market or expand your shop.
Even hobby income still goes in your tax return, but you do not register a business.
Sellers Outside Australia
If you live outside Australia, you do not need an ABN. Each country has its own rules.
In the United States, you may need a business license depending on your state. In the United Kingdom, you may need to register as a sole trader if you pass the tax threshold. Always check your local tax office.
Why Register for an ABN Early?
Even if not required, many sellers choose to register. An ABN helps you:
- Look credible to buyers and partners.
- Claim business expenses against income.
- Get ready for growth before you hit high sales.
- Keep your records tidy from the start.
Since it costs nothing and is quick to apply, an ABN is a safe step once you take your shop seriously.
Final Word
You do not always need an ABN to sell on Etsy. If the ATO sees your shop as a hobby, no ABN is required. If it is a business, an ABN is mandatory.
Etsy will not block you from selling without one, but tax compliance is your responsibility. If you plan to grow, apply for an ABN early. It gives you structure, builds trust, and keeps your shop ready for success.
