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tenielle23(Newbie)Newbie
27 Oct 2025

Hi, I am wondering how to treat Klayvio and Shopify invoices, as they do not charge GST on their invoices.


Klayvio has said online: As a GST-registered business in Australia, the GST amount will appear on your Klaviyo invoice as an exempt amount not payable to Klaviyo, since you are responsible for paying this amount to the Australian Taxation Office (also known as a reverse charge). I am a registered GST business in Australia, and I have given them my ABN.


Therefore, do I treat this invoice total amount as tax-inclusive, and the tax rate would be Reverse Charged GST? If this is the case, how do I know if I also do this on Shopify invoices (charges for online website rental) or any other digital services I have purchased overseas?

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3 replies
340 views
3 replies

All replies

ATO Certified Response
RachelATO(Community Moderator)Community Moderator
ATO Certified Response30 Oct 2025

Hi @tenielle23,


If you're a GST-registered business in Australia and you've provided your ABN to overseas suppliers like Klaviyo or Shopify, you may need to apply the reverse charge GST rules when you receive services or digital products from them.


Under the reverse charge rules, you're responsible for reporting and paying GST on the taxable importation of services or digital products from overseas suppliers who don’t charge GST on their invoices. This applies when:


  • you're registered (or required to be registered) for GST
  • the supplier is not based in Australia
  • the supply would be taxable if made by an Australian supplier
  • the invoice doesn’t include Australian GST.

In this case, you treat the invoice as GST-inclusive, and you calculate the GST yourself (usually 1/11th of the total amount). You report this GST in your BAS under G1 (Total sales) and 1A (GST on sales). If the purchase relates to your business and you're entitled to claim input tax credits, you can also report it at 1B (GST on purchases).


This treatment applies to digital services, as long as the conditions above are met. 

tenielle23(Newbie)Newbie
25 Feb 2026

Hi Rachel, Thank you for this. I am still a little confused. I have an invoice for Facebook that I have paid that is $19.99. Do I then need to add GST on top of this amount ? I am trying to reconcile this amount in Xero and if I add GST to the $19.99 the total amount goes over the $19.99 I am reconciling to. Therefore Xero says this incorrect? I have the tax rate as reverse 10% GST and if I have the amount in GST inclusive this works but not if I have to add on an additional amount of GST that I haven't paid for.


This is what I have so far in Xero:

Amounts are: Tax Inclusive


Unit Price (Invoices and paid price) - $19.99

Account - Advertising

Tax Rate - Reverse change GST

Total - $19.99 (GST $1.82)

JayATO(Community Support)Community Support
26 Feb 2026

Hi @tenielle23,


For purchases from overseas suppliers like Facebook that don’t charge Australian GST, you don’t add GST on top of the amount you paid. Under the reverse charge rules, you treat the amount on the invoice as GST‑inclusive for BAS purposes, even though the supplier didn’t charge GST. This means:

  • the amount you paid stays the same,
  • you work out the GST that applies under the reverse charge, and
  • you report that GST on your BAS (usually at 1A, and at 1B if you’re entitled to claim an input tax credit).

GST applies under the reverse charge when you receive supplies from overseas that would have been taxable if made by an Australian supplier, and the overseas supplier hasn’t charged GST.


The reverse charge doesn’t increase the amount you paid to the supplier – it just creates a GST amount that you report on your BAS. How you enter this in Xero or any accounting software is something your bookkeeper or software provider can help with.


If you’re unsure whether a particular overseas service is subject to reverse charge GST, you may want to get advice from your service provider.

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How do I treat Klayvio and Shopify Invoices that dont charge GST? | ATO Community