Live auctions, fast payouts — and real tax obligations. Here's how Australian Whatnot sellers stay compliant.
Yes. If you're regularly selling on Whatnot with the intention of making a profit, the ATO treats that as business income. It doesn't matter that sales happen live via auction — the commercial intent test applies just the same as it does for eBay or Depop sellers. If you're sourcing items to resell through Whatnot shows, you have tax obligations.
The ATO has been increasing its data matching capabilities across digital platforms. Australian payment processors are required to report transaction data, and income that doesn't match your declared earnings can trigger a review. For more context on how this works across platforms, see our reseller tax in Australia guide.
If you're running a reselling business — even part-time — you should have an ABN. Whatnot is a US-based platform, so it won't enforce Australian ABN requirements on your account. But the ATO will expect you to have one if your selling activity constitutes a business. Applying for an ABN is free and straightforward through the Australian Business Register. For a full walkthrough, see our reseller ABN guide.
Whatnot charges sellers a commission on each sale — typically around 8% — plus payment processing fees. These fees are deductible expenses for your reselling business. However, because Whatnot pays out net of fees, many sellers misunderstand their actual gross revenue. Your taxable income is your gross sales (before fees), not your net payout. You then deduct fees, cost of goods, and other expenses separately.
This is one of the most common bookkeeping mistakes Whatnot sellers make. Recording only payout amounts understates revenue and can create inconsistencies if the ATO ever cross-checks your bank deposits against declared income. For a deeper look at fee accounting, see our guide to Whatnot fees in Australia.
Whatnot provides a seller dashboard with sales history, but it's not designed for tax purposes. You'll need to export or manually record your gross sales, fees charged, and net payouts for each period. You should also keep records of your cost of goods — what you paid for each item before it sold on a show.
Live selling creates unique record-keeping challenges because items often sell quickly across multiple shows. Tracking inventory costs per item becomes important if you want to accurately calculate your profit margins and COGS deductions. Our reseller inventory tracking guide covers approaches that work for live sellers.
If your Whatnot sales contribute to an annual turnover of $75,000 or more (across all platforms), you're required to register for GST. As a GST-registered seller, you'd charge GST on sales to Australian buyers and can claim GST credits on business purchases. Below that threshold, GST registration is optional. For a full explanation of how GST applies to resellers, see our reseller GST guide.
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