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OneFreeSpirit(Initiate)Initiate
7 July 2025

I sell digital downloads through Gumroad, a US-based platform. I offer them as pay-what-you-want (including free), and some customers choose to pay. These payments are received by my GST-registered Australian Pty Ltd company, with Gumroad taking a platform fee and transferring the balance to me weekly.


The digital downloads are intended for Australian customers, and I reasonably believe most purchasers are in Australia, although I have no way to verify their location.


Given this setup, should the income I receive from Gumroad be treated as GST-free or GST-inclusive for Australian GST purposes?

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1 replies
137 views
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All replies

YellowPotato(Taxicorn)Taxicorn
7 July 2025

If you can't identify location, most likely all of the gross sales would be taxable sales. Gross sales would be the sales before gumroad's merchant fee or whatever they charge. You may want to try asking Gumroad if they provide country data of buyers to sellers, their Gumroad privacy policy does say "We may also share your Personal Data with ... Our sellers, when you make a purchase with them using our Services."


Reading Example: payments from overseas social media platforms may help understand if it's a taxable sale or GST-free sale.

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GST Treatment of Gumroad Income for Digital Downloads | ATO Community