What taxes do I need to pay if I order from overseas dropshipping suppliers ?

 Author: NikkiATO(Community Moderator)Community Moderator

28 May 2026

Hi @DDbless,

It depends, but there are a few key tax areas to consider.

As a sole trader, you’ll need to include all your sales income in your tax return, regardless of whether the goods come from Australia or overseas.

You can claim business expenses (including what you pay the supplier) when working out your profit.

Because you’re not registered for GST:

• you don’t charge GST to customers
• you don’t claim GST credits.

However, GST may still be built into the price you pay to suppliers (especially if they are registered or import rules apply).

For goods sent directly from overseas to your customers:

• GST or duties may apply depending on the value of the goods and how they are supplied.
• In many cases, the overseas supplier or platform may already be handling GST if they are registered and supplying to Australian consumers.

Your main obligations are:

• report all income
• claim allowable business expenses
• understand how GST applies to your specific supply chain.

Because dropshipping can involve different arrangements (who supplies the goods, who is responsible for import, etc.), the exact GST outcome depends on how your setup operates, not just that the products come from overseas.

Check out our website for more info on GST and Australian businesses – imported services, digital products and low value imported goods and How to charge GST on imported services, digital products and low value imported goods.

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