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Do You Need An Abn For Dropshipping?

Dropshipping is a popular ecommerce business model that has taken the world by storm in recent years. It’s simple enough to understand: You don’t have a physical storefront, and you sell products through an online store. And while there are many benefits to this business model, it does have its own set of challenges. One of the biggest challenges is keeping up with the demands of the online store. If you don’t have an Abn for dropshipping, you may be at a disadvantage when it comes to taxes, inventory management, and more. In this blog post, we will explore the benefits and drawbacks of having an ABN for your dropshipping business.

Should You Use an Abn For Dropshipping?

An ABN is a tax identification number for businesses in Australia. It’s important to keep in mind that not all dropshipping businesses need an ABN. For example, if you’re using a virtual business entity (BVU), you don’t need an ABN.

Additionally, some dropshipping businesses don’t require an ABN if they’re only selling goods online and aren’t doing any other business activities (like manufacturing). However, most dropshipping businesses will still need an ABN if they’re also doing any other business activities like selling through physical stores or working with affiliates.

If you’re unsure whether or not you need an ABN for your business, it’s best to speak to your accountant or tax adviser.

What is an ABN?

An ABN is an Australian Business Number. It’s a unique nine-digit number that identifies your business with the Australian Taxation Office (ATO). You need an ABN if you’re trading in Australia and you have to pay GST on your sales.

To get an ABN, you need to apply to the ATO. There’s no fee for getting an ABN, but you must provide proof of your business existence, such as a copy of your business register or a letter from your bank confirming that you’ve been issued an account. Once you have an ABN, use it on all your tax paperwork, including invoices and TAFE forms.

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Pros and Cons of Having an ABN

There are a few pros and cons to having an ABN for dropshipping. On the positive side, having an ABN can make your business more professional and organized. It can also help you track your sales and financials more easily. Additionally, having an ABN can make it easier to find suppliers and partners.

However, there are also disadvantages to having an ABN. For example, it can increase your costs associated with starting and running your business, especially if you’re using a traditional bank account (rather than a dropshipping-specific account). Furthermore, not all states require businesses to have an ABN, so it may not be available in all areas. Finally, some banks may charge higher rates for ABNs than others.

How to Get an ABN

If you are starting a business as a Dropshipping retailer, then obtaining an ABN may be required by some government agencies. However, there is no need to get an ABN if you only sell physical products and do not have any online sales activity. If your business generates income through online sales, then it is likely that you will need an ABN.

There are a few steps that you will need to take in order to obtain an ABN:

-Find out if your business needs an ABN.
– Obtain an ABN application from the Australian Business Register (ABR).
– Complete the application and submit it to the ABR.


Dropshipping can be a great way to start your own business, but it’s important to remember that you don’t need an ABN for this type of business. If you’re comfortable with handling your own finances and you have a good understanding of tax laws, then dropshipping is the perfect business model for you. However, if you’re not comfortable with taking on these responsibilities or if you want to get some help from someone else, then an ABN may be a good idea for you.