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Does WooCommerce Charge GST Australia?

Last updated on October 1, 2022 @ 5:24 pm

As an online business owner in Australia, you’re required to charge your customers Goods and Services Tax (GST) on all taxable items that you sell. But what if you’re using WooCommerce to run your eCommerce store?

Does WooCommerce charge GST automatically, or do you need to set it up yourself?

The short answer is that WooCommerce does not charge GST automatically. You will need to set up your WooCommerce store to charge GST manually.

However, this is relatively easy to do and we’ll walk you through the steps below.

In Australia, all businesses that sell taxable goods and services are required to charge GST. GST is a 10% tax that is added to the sale price of taxable items. Businesses then pay this GST to the Australian Taxation Office (ATO).

PRO TIP: If you are using WooCommerce to sell goods and services in Australia, you will need to charge GST on your sales. WooCommerce does not automatically calculate or add GST to your sales.

If you’re using WooCommerce to run your online store, you will need to set up your store to charge GST manually. This is because WooCommerce is a self-hosted eCommerce platform and is not based in Australia. As such, it is not required to automatically charge GST on behalf of its Australian users.

Here’s how to set up GST in WooCommerce:

  1. Log in to your WordPress dashboard and go to WooCommerce > Settings.
  2. Click on the ‘Tax’ tab and then select ‘Standard Rates’ from the drop-down menu.
  3. Click ‘Add Row’ and enter ‘GST’ in the ‘Country/State’ field.
  4. In the ‘Tax Class’ field, select ‘Standard Rate’.
  5. Enter ’10’ in the ‘Rate (%)’ field.
  6. Click ‘Save Changes’.

Conclusion:

WooCommerce does not charge GST automatically but it’s easy enough for business owners in Australia to set up their stores manually so they can comply with local tax laws.

Madison Geldart

Madison Geldart

Cloud infrastructure engineer and tech mess solver.