Difference between ABN and ACN
ABN vs ACN:
While ABN and ACN are both identification numbers issued by the Austalian authorities, they stand for entirely different things. Yet it is easy to confuse oneself between these two terms because of the similarities of the abbreviations as well as other factors which contribute towards this apparent similarity.
What is ABN?
The Australian Business Number which is commonly referred to as ABN, is a eleven digit number issued to businesses in the country by the the Australian Tax Office (ATO). Once each business is registered with the ABR (Australian Business Register), each company or business receives its own unique number which in turn helps deal with various business organizations in the country.
In order to be eligible to receive an ABN, a certain company must either be under the corporation laws of Australia, be a government agency or an entity that conducts business within Australia. Once obtained, all Australian businesses are required to include this specific number in all their business dealings and documents such as in all invoices, statements or slips. Yet and ABN is not essential for a business unless it needs to register for GST which is an essential tax which should be paid by companies which has an annual revenue of at least $75,000 and also by non-profit organizations that have an annual revenue of at least $150,000.
What is ACN?
The Australian Company Number which is more commonly referred to as ACN, is also a nine digit number which is issued by the Australian Securities and Investment Commission (ASIC) after the verification of the documents which are submitted by the company proving their business activities.
Forming a part of the Corporation Act of 2001, an ACN is considered an essential legal requirement for an Australian company to conduct business within the country and also overseas.
What is the difference between ACN and ABN?
While the ABN is issued by the Australian Tax Office (ATO), the ACN is issued by the Australian Securities and Investment Commission (ASIC). And whereas the ABN has eleven digits, the ACN has only nine digits which stand in a particular pattern.
Whereas both the ABN and ACN have to be noted down on all business documents, be it receipts, invoices, statements, etc, the ABN and the ACN serve different purposes, The ABN ensures that no payment is withheld from the business whereas an ACN is a legal requirement that a certain business needs to have in its possession in order to conduct business both within the country and overseas.
An ABN is not an essential requirement for a business as every business is not required to have one unless it needs to register for the GST. Yet, an ACN is an essential requirement that is asked of a business that performs its business functions within Australia and also overseas.