Australian GST FAQ
What is Australian GST?
According to the Australian Taxation Office, “Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.”
GST has been around for a long time; why is Creative Market only now charging GST in 2018?
According to the Australian Taxation Office, “From 1 July 2018, GST will apply to retail sales of low value goods ([AUS] $1,000 or less) to Australia, when purchased by consumers. For low value goods, GST is collected through the sale, instead of at the border.” Products on Creative Market that are sold to Australian customers fit this criteria, so we are required to begin charging GST.
A: Buyers who use a Credit Card with an Australian billing address and have not provided an Australian Business Number (ABN) must pay GST.
What is an Australian Business Number (ABN)?
An ABN shows that a buyer is a registered business in Australia and therefore won’t be charged GST by Creative Market. If you are a business, but do not have a valid ABN, you will be charged GST.
Will I be charged at purchase if I provide a valid ABN?
After July 1, 2018, upon your first purchase of a Creative Market product, you will be asked to confirm where you are located. If you affirm you are in Australia, your purchase (as well as all subsequent purchases) will be charged GST. If you input an ABN in your Payment Settings, Creative Market will not collect GST on transactions that occur after the ABN is provided.
You may enter an ABN here. Please note that this must be entered before your purchase to avoid being taxed.
If I obtain a valid ABN later, how do I get a refund for GST that Creative Market charged me on purchases prior to that?
If you obtain a valid ABN after your purchase, we cannot refund you for GST that Creative Market charged you on purchases prior to that. Creative Market recommends you consult with your tax advisor in order to obtain a refund in a case like this.
How can I enter my ABN and/or change my country and address?
You may do this in your payment settings here.
Please note that changing your GST and/or your country and address will only affect purchases that occur after the change(s) are made. Previous purchases will remain unchanged.
I purchased from a Creative Market shop owner who has a ABN, so why was I charged GST?
GST is assessed based upon the location of the customer, and is not affected by a shop owner’s tax status.
Australia’s GST rate is 10%, so the price you would pay on an item would add 10% of the purchase price to your final billed amount. For example, paying GST on a $10 item would be calculated as follows:
$10 item price + $1 GST (10%) = $11 total billed amount
Please see “Who must pay GST?” above.
Who is considered the seller for GST purposes- Creative Market or the shop owner?
For the purposes of GST, Creative Market is deemed to be the seller. Creative Market determines, collects and remits GST for all purchases by Australian buyers.
Can I get a GST invoice for my purchases?
GST invoices are automatically created at the time of purchase and can be found on your Payment Settings page. All invoices are designed to comply with the legal requirements set forth by the Australian Taxation Office. Additionally, all invoices will be archived in Creative Market’s tax compliance system.
Will GST collected from a shop owner’s sales be shown on 1099s and 1042s?
No, because GST is not an income tax, amounts collected will not appear on US forms.
For Australian buyers, is there any way to be exempt from GST, besides providing an ABN?
As a shop owner, are my earnings affected by GST?
No, GST is not part of the earnings calculation.
Creative Market is based in the US, so why are you charging me GST?
Since Creative Market products sold to Australian buyers meet the criteria of “low value imported goods,” Creative Market must charge Australian buyers GST.
Is Creative Market registered with the Australian Taxation Office?
Yes; Creative Market’s ATO Reference Number (ARN) is 3000 1360 7965.
Who will remit the GST collected to the Australian Taxation Office?
Creative Market determines, collects and remits GST for all purchases by Australian buyers.
Are Creative Market site credits, PayPal purchases or un-withdrawn earnings used to buy products affected by GST?
We will not charge GST on credits packages, so unused credits will not be affected by GST. However, any product purchase will be affected by GST.
Please see “Who must pay GST?” above.
Is GST related to VAT?
VAT is another form of consumption tax that applies to buyers in the EU. It is not related to GST, which applies to buyers in Australia. For more information about VAT, please check out our VAT FAQ.
If I ask for a refund, will the GST I paid be refunded as well?
Yes, refunds will be issued for the full amount of the purchase price, which is base price + GST.
As an Australian buyer, how will I know what an item’s total price will be (including GST) before I purchase?
The prices shown on Creative Market products do not include GST. However, when you enter the purchase flow, the item’s price + the additional GST will be shown. After finalizing your purchase, you will be billed the total amount + GST.
If you’ve made a purchase previously and were charged GST, you will always be charged GST.
See “How is GST calculated?” above.
I was traveling in Australia when I made my first Creative Market purchase, and I was charged GST. However, I don’t permanently live in Australia, so why am I being charged GST?
Upon your first purchase of a Creative Market product (after July 1, 2018) you were asked to confirm where you are located. If you affirmed you were located in Australia, your purchase (as well as all subsequent purchases) will be charged GST. You may correct your information from this page. Please note that previous GST collected cannot be refunded.
Please see “Who must pay GST?” above for clarification.
Help! I see an error when I attempt to input my ABN: "The Tax ID number you provided was not valid."
Make sure you input your 2-digit country code for Australia at the beginning before you enter your ABN as it was issued to you (e.g. "AU###..."). If you're still experiencing an issue, please contact the Support Team with a screenshot, and we'll gladly investigate further.
Additional information on the topics above can be found here:
The above FAQ is not intended to represent tax, accounting, or legal advice. Should you have any questions, please consult your tax advisor.