It’s the start of a new tax year, so it’s seems appropriate to revisit one of the topics that we get heaps of questions about. How do I make sure my new Spiffy Store is correctly configured for GST?
Not many people realize that overseas-based ecommerce services, like Shopify, don’t support GST and other Australian tax regulations properly. Happily, Spiffy Stores has been developed in Australia, and that means you don’t have to worry about your store being fully tax compliant.
The first set is to go to your “Preferences -> Regions & taxes” page, and for Australia, make sure the country tax rate is set to 10%. If you’re not registered for GST, then set this value to 0%.
Underneath the shipping countries on this page, you’ll see a “Taxation Rate Policies” section. For Australia, just make sure you check the boxes to include taxes in your product prices, and to charge taxes on domestic shipping rates.
Finally, on the “Preferences -> General Settings” page, go to the “Business Number” section and enter your ABN. This will ensure that your ABN appears on all orders, and ensures that you comply with the taxation legislation. Your order templates will also include the “Tax Invoice” label as required by law.
Your products will all display with the GST included price, except for any products that you have marked as Tax Free.
When an order is placed, the customer receives an order confirmation which shows the amount of GST included in the order. In addition, for orders placed from overseas, the amount of GST included in the order is automatically deducted.
And that’s it. As they say, easy peasy.