Why do I need an ABN to use this?

[MrB2023]

I wanted to have a garage sale at home to get rid of some items which we no longer need.   I felt uncomfortable at the thought of having cash so I asked at officeworks whether Square would allow me to have people use their credit cards safely to pay for stuff they buy.  They said it would be perfect for the job.

I got home and created my account when it asked me for my ABN number??

WHY? I just want to have someone buy a garden rake for $10 and for it to come into my bank account!  If I get an ABN it will be as though I’m running a business and may have to pay tax… is this correct?  If so, I feel as though I’ve been misled.   Anyone here felt the same or is it just me?

[MrB2023]

…so if I get an ABN number does that mean I will need to charge GST for stuff I already own (and paid GST on)  and then have pay tax in my tax return??

Square sounds like an ideal product to use but I just don’t understand the need for an ABN or if there will be any tax implications down the track.

[Arie · Accepted solution]

Hi @MrB2023 👋

Thanks for writing in and apologies for the delay in getting back to you. 

For reference, you can sign up for a Square account without an ABN as an individual, or sole trader. The tax implications are the same, as your income would be reported as per Australian laws. This is required for Square, and any other payment processor. Your income would be reported to the details you enter as part of the identity verification process required to accept card payments. Whether or not you'd have to pay GST, depends on a number of factors an accountant would be able to clarify for you. 

Please let us know if you have any further questions, we're happy to help!

[Jax5]

I’m trying to just sell some stuff from around my house and I don’t have a abn but I can’t use tap to pay without a abn

[Katie_SQ]

Hi @Jax5,

Thanks for reaching out with your question.

You can sign up for a Square account without an ABN as an Individual or Sole Trader. I've gone ahead and moved your post to an existing thread that provides more details on this. Please see Arie’s Best Answer pinned to the top of this thread.

You won’t need an ABN in order to process payments with Tap to Pay. However, in order to accept any card payments with Square, including Tap to Pay, you’ll need to verify your identity first. You can learn more about the identity verification process on our Support Centre.

I hope this information helps! If you have any other questions, please feel free to ask. 😊