eBay Australia GST on Imported Used Drones

Understanding Australian GST on imported used drones

When a used drone arrives in Australia from overseas, the GST outcome depends on its customs value (typically the price you paid, plus shipping and insurance costs).

Goods valued at A$1,000 or less Under the low-value imported goods rules, eBay is generally required to collect GST at the point of sale when a non-resident seller completes a transaction with an Australian consumer. This means the buyer sees GST added at checkout, and the seller does not need to manage import clearance on the GST side for that shipment. The GST collected by eBay is remitted to the ATO.

Goods valued over A$1,000 For shipments with a customs value above A$1,000, GST (and any applicable customs duty) is processed through a formal customs entry at the Australian border. The buyer — or their customs broker — will typically pay these charges before the drone is released. If you are a GST-registered business importing the drone for resale, you may be able to claim an input GST credit on your next Business Activity Statement, provided you hold the correct import documents.

Because used drones often have a variable transaction value, keeping thorough records — purchase invoices, international shipping receipts, and customs entry forms — helps you substantiate the GST position during an ATO review.

eBay’s role and the GST-collection framework

eBay Australia is required to comply with the ATO’s extended GST rules for goods sold to Australian consumers by offshore sellers. The platform acts as the collecting entity for many imported low-value transactions, including used drones.

• For Australian-based sellers who are GST-registered, eBay may automatically include GST in the listing if the seller’s settings indicate a GST-registered business.
• For non-resident sellers, eBay typically adds GST at checkout for items valued at A$1,000 or less heading to an Australian address.
• Sellers should check how their eBay account settings interact with the GST status of each listing — especially when offering both new and second-hand inventory — to avoid under- or over-collecting.

The system does not replace the seller’s own compliance obligations; if you are an Australian business making supplies, you remain responsible for reporting GST correctly on your returns.

The second-hand margin scheme: how it works for used drones

Resellers of pre-owned drones can reduce the GST they remit by using the second-hand margin scheme when certain conditions are met. The scheme applies when a GST-registered business:

• Acquires second-hand goods (drones) from a seller who is not registered for GST, or who did not charge GST on the sale.
• On-sells the goods in the same condition, without claiming an input GST credit on the purchase.

Under the margin scheme, GST is calculated only on the difference between the sale price and the original purchase price — the profit margin. For a seller operating on thin drone-refurbishment margins, this can make a meaningful difference compared to accounting for 1/11th of the full selling price.

The ATO requires:

• The seller to be registered for GST.
• Records that clearly identify each second-hand item, the GST-exclusive purchase price, the date of acquisition, and the subsequent sale price.
• Invoices that indicate the margin scheme has been applied.

If you purchased a used drone from a private individual in Australia who did not charge GST, or imported a drone from an overseas private seller where no Australian GST was embedded, the margin scheme is often worth exploring. We recommend speaking with a tax professional who knows your specific sale pattern before relying on the scheme, because ATO eligibility reviews can be detailed.

When the margin scheme may not apply

The margin scheme is not available if you purchased the drone from another GST-registered business that supplied it with a tax invoice showing a GST component, or if you plan to export the drone (exports are generally GST-free through a different mechanism).

Do you need an ABN to sell used drones on eBay Australia?

If you are regularly selling drones on eBay with an intention to make a profit, the ATO will generally view you as carrying on an enterprise. Applying for an Australian Business Number (ABN) is a practical first step.

• eBay Australia’s identity verification and account settings may prompt you for an ABN if you are operating as a business.
• Having an ABN allows you to register for GST (if your projected turnover reaches the registration threshold) and to claim GST credits on business purchases, such as refurbishment tools and packaging.
• If you sell to other businesses without quoting an ABN, the payer may be required to withhold tax at the top marginal rate under the “no-ABN” rules. For consumer eBay sales, this is rarely triggered, but an ABN still makes your business presence clearer.

If your activity is genuinely a hobby — occasional, not intended for profit, and not run in a business-like manner — you may not need an ABN. The line blurs quickly with online reselling, so checking the ATO’s “business or hobby” guidance and documenting your intentions can reduce uncertainty.

Second-hand dealer licensing: NSW and other state considerations

Reselling used goods as a business can trigger licensing requirements under state law. The situation is most concrete in New South Wales.

• NSW Fair Trading generally requires anyone who carries on a business of buying or selling second-hand goods to hold a second-hand dealers licence. This can apply to purely online sellers without a physical shop, depending on the scale and regularity of the activity.
• The requirement tends to focus on businesses rather than individuals selling personal items occasionally. If you maintain a dedicated eBay store with multiple listings, advertise, and operate with profit intent, a licence is more likely to be expected.
• Other states and territories have their own regimes. Victoria, Queensland, and Western Australia, for instance, have second-hand dealer or pawnbroker laws, but the scope and thresholds differ.

A prudent step is to contact your state fair trading body and describe your specific online resale model before you start listing drones at volume. An unlicensed trading operation could expose you to enforcement action, especially in NSW where the regulator actively monitors online platforms.

Exporting used drones from Australia: GST zero-rating and shipping compliance

When an Australian GST-registered business exports a used drone to a buyer in the UAE, Nigeria, or elsewhere, the supply may be GST-free (zero-rated) if the export conditions set by the ATO are met.

While the ATO’s export rules require certain timeframes and documentation, the core principle is clear: the goods must be physically exported from Australia, and the business must retain evidence of the export. Shipping the drone within the required export window and keeping documents such as the carrier’s bill of lading, air waybill, or a customs declaration is fundamental. Without those records, the ATO may treat the supply as a domestic sale and expect GST.

Zero-rating versus margin scheme

• If you are exporting a drone you bought second-hand, you generally cannot use the margin scheme on that export because GST-free treatment takes priority. The export is not subject to GST provided you satisfy the export rules.
• If you later sell the same drone domestically and meet the margin scheme conditions, you can switch to the margin approach for that domestic sale.

Lithium battery and dangerous goods rules Used drones almost always contain lithium-ion batteries, which are classified as dangerous goods for air transport. When exporting from Australia to destinations like Nigeria, you must comply with IATA dangerous goods regulations (or the equivalent ADG code for ground transport to the airport). This often means the battery must be installed in the device or, if shipped as a spare, packaged according to strict limits on state-of-charge and packaging qualification.

Most couriers and freight forwarders have their own checklists. Confirm the correct dangerous goods declaration process with your logistics provider, as carriers may reject poorly packaged drones at the dock. Failure to follow dangerous goods rules can result in significant delays and carrier penalties, quite aside from any tax consequence.

Destination country considerations Used consumer drones are not ordinarily subject to military export controls, but if the drone was originally marketed for enterprise or industrial use (or has specialised sensors), ruling out dual-use classification is worth a quick check with the Department of Defence’s export controls branch. For Nigeria, the importer will need to handle local customs clearance and pay any import duties. For UAE, the process is similarly standard for consumer electronics, but working with a local customs broker familiar with drone imports can smooth clearance.

Importing used drones from the UK post-Brexit and from the EU

Cross-border tax rules changed after Brexit, but the practical pattern for shipping a used drone from the UK or the EU to Australia is now more aligned than it was.

UK to Australia A UK business exporting a used drone can zero-rate the sale for UK VAT purposes, treating it as an export. To support zero-rating, the seller should retain shipping and export evidence, and must ensure the goods depart the UK within the timeframe specified by HMRC (typically a matter of months). If the UK seller is VAT-registered, the sale can be reported in the VAT return as a zero-rated export. If the seller is not yet VAT-registered, they may need to register once their taxable turnover crosses the registration threshold — this is a commercial decision that depends on total sales, not just Australian exports.

On arrival in Australia, the drone will attract import GST according to the value thresholds outlined earlier, with eBay or customs handling the collection.

Romania (and other EU countries) to Australia For an EU seller (Romania, for instance), the export from the EU is eligible for VAT zero-rating as an intra-community supply if documented correctly, provided the goods physically leave the EU. This relieves the Romanian VAT on the sale itself.

Additionally, if the seller originally purchased the drone in Romania and paid local VAT (say on a second-hand item bought from a dealer who charged VAT), they may be able to claim a VAT refund from the Romanian tax authority (ANAF) by proving the goods were exported. The process typically requires:

• An invoice showing the original VAT paid.
• Customs export documentation stamped by the Romanian or EU border customs office.
• A refund application submitted within the statutory deadline.

Because each EU member state administers refunds differently, budgeting for a customs agent or tax advisor in the country of export is often worth the cost. Self-managed refunds can stall on paperwork if the export proof does not perfectly match the authority’s checklist.

Drone operational compliance in Australia (CASA)

Apart from tax and trade, flying a drone in Australia is subject to the Civil Aviation Safety Authority’s regulations, including Part 101 for many recreational and certain excluded-category commercial operations. Whether the drone arrives pre-owned from eBay or fresh from a retailer, the operator must still comply with CASA’s rules — registration for drones weighing 250 g or more, operator accreditation for commercial work, and adherence to standard operating conditions such as maintaining visual line of sight and respecting no-fly zones.

When selling a used drone, you are not responsible for the buyer’s obligation to operate lawfully, but passing on a basic reference to CASA’s drone safety rules adds value and reduces misunderstandings. A drone that changes hands across borders can end up in a country with no equivalent registration system, but in Australia, the expectation is that the remote pilot follows Part 101 or the appropriate ReOC framework.

Which scenario applies to you? (Quick-glance table)