Understanding tax implications for customer donations in Australia?

Hi, As a not for profut in Australia I am looking to use the tipping feature to get donations from customers. What are the implications of GST and on the tipping amount?

  1. Does the amount get taxed or is seperated from the purcahse ?

  2. Is there a way to provide a taxabale donation receipt?

thanks

Hi @TT_Wardrobe ,

Really great questions!

The tip feature is calculated on the cart’s total before taxes and shipping, but something to remember is that the tips are subject to credit card fees or transaction fees as they are part of the total order amount.

Regarding your second question, can I ask how you currently recieve donations with your store? If it’s via an app, the developer of the app might be the best port of call!

Hope this helps.

Hi @TT_Wardrobe ,

Not much sure about the tipping process within Shopify but you can check this out. I hope it will help.

https://help.shopify.com/en/manual/checkout-settings/tips