Dropshipping and VAT/GST

New Member
3 0 0

Hi, I'm a newbie in dropshipping business.

Trying a find answer about my doubt but to no avail.  So, hoepfully someone can help clear my doubt here

I'm about to start selling fashion and clothing in Shopify via dropshipping method.  I'm registered as a sole trader in Australia but not GST registered as I don't foresee that my revenue will exceed the limit that requires me to register for GST.

As I'm not GST registered in Australia, I cannot charge GST to my customers within Australia. I know there is tax setting for every country in Shopify website.  So, I need to set the GST for Australia as 0%.  Am I right?

How about customers outside Australia?    I need to know the fundemental whether I should charge customers outside Australia with their country's VAT/GST/Sales Tax if I do online selling via dropshipping?  For info, I'm just selling clothes and not soemthing that is expensive or digital based.

Thank you.



Shopify Partner
117 0 16

Hey Costa,

I recommend asking this question in the Shopify Entreprenuers group on Facebook. I have seen similar questions asked (and answered!), and it's also a really great group to be in regardless if you are a Shopify merchant; you will learn a lot there. We also have archives you can search through which might already have your question answered :) 

Warm regards,
Sharon Reeds

Co-founder, Intuitive Shipping
New Member
3 0 0

Thank you so much, Sharon.  I shall take a look.

Shopify Partner
54 0 28

Hi Costa,

Congrats for your new business :) That's pretty exciting stuff!

We have put together a comprehensive guide for setting up taxes/VAT, and a specific GST guide for Shopify stores in Australia too.

Our Articles should cover everything you need to know - let me know if this helps. If you ever need beautiful invoices, check out our website, too.

Good luck,

Dia from Sufio