I am creating a Wordpress site and want to sell some online products. Problem I have come across is easy digital downloads does not set tax by default. What tax rate should I set as the default in Australia? Does the law require one to be set and, if so, what are the consequences of not setting it?

  • 1
    That fact that it is a Wordpress site and you use a particular plugin is irrelevant; the issue is sales tax for a site based in Australia. Feb 9 '18 at 17:26
  • @BlueDogRanch According to what I have found, sales tax should be set at 10% Also, businesses recommended in my case become sole traders (less paperwork x 100) which means apply for Australian business number, and business registrar so you can use your business name as website name I guess.
    – Grimreaper
    Feb 9 '18 at 22:57
  • So what is your legal question? If the plugin Easy Digital Downloads doesn't support AU taxes, that's not a legal question. Ask plugin support. Feb 9 '18 at 23:09
  • @BlueDogRanch It has the option. I guess I am confused about how I am to deal with all these different Countries. Do I just set standard 10% tax rate and who cares if they are from a different country
    – Grimreaper
    Feb 10 '18 at 0:20
  • If you apply for a sale tax license, the paperwork you receive when doing so would ordinarily tell you what to do.
    – ohwilleke
    May 11 '18 at 18:08

Depends on exactly what you are selling and whether your customers are in Australia or overseas.

The fact that you are selling online and your goods are digital is irrelevant.

Exports from Australia are typically GST-free. You would therefore need to configure your site so that it charges 10% tax if the customer lives in Australia. See the authoritative source for full details.

  • I thought as such. I'm a bit confused as to whether paypal and card payments do this automatically. I might add a VAT and 10% to all and not sure if paypal does this. I will add it inclusive of price I guess.
    – Grimreaper
    Feb 10 '18 at 4:31
  • Paypal doesn't automatically add VAT (at least unless you set it up to do so) because Paypal doesn't know if the transaction is subject to VAT or not.
    – ohwilleke
    May 11 '18 at 18:09

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