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Australian Wholesalers – Do You Really Need An ABN To Buy From Wholesalers In Australia?

One of the most frequently asked questions is do you need an ABN (Australian Business Number) to buy from Australian wholesalers?

The answer is yes, you need an ABN to buy from most genuine Australian wholesalers. Some may require you to have a registered business name or business name. Some genuine wholesalers do sell to people who don’t have an ABN, but they are few and far between and usually don’t have particularly popular products. Don’t worry, read on to find out how anyone can easily meet these requirements for little or no cost!

Why not sell it to people without an ABN?

The wholesaler uses the potential customer’s ABN to confirm their business identity – to verify that they are indeed a business customer and not just an end consumer (the general public) trying to get discounted products. This is also why some Australian wholesalers prefer to only deal with people who have a registered business name (although many do not require this).

Australian wholesalers are responsible for selling to Australian retailers…AND NOT to the end user or the general public. If a wholesaler started selling products to end users bypassing the retailers, it would not only make the retailers very angry, but also probably lose a lot of valuable retail customers/business. They would be effectively cutting into/stealing market share from retailers – not a good business move.

Some wholesalers/distributors, especially for popular branded products, also like to ensure that their products are only sourced from reputable wholesalers that they consider to be of “fairly high quality”. By ensuring that they only sell to people who meet certain minimum requirements – namely an ABN and most likely a business name – they help ensure that their product is only available in what they consider to be quality stores.

If someone wants to say you don’t need an ABN if you buy from Australian wholesalers on your wholesaler list then alarm bells should be ringing. Either they are not telling the truth, or most of their so-called wholesalers are nothing more than discount retailers.

Isn’t it expensive and difficult to get an ABN?

No, anyone who is resident in Australia for tax purposes can apply for an ABN for free – you don’t need to register outside of your tax number to qualify for an ABN. You can apply online at the ATO (Australian Tax Office) website at www.ato.gov.au or call them on the phone.

A business name costs a bit more, but can be registered for $100-$200 or less in most states. Most retail businesses in Australia will find that no specific licenses are required to operate, however, check your state’s licensing regulations before registering your business name. You can find out more about ABNs, business names and licensing requirements on the Australian Government’s business website at www.business.gov.au.

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