Amazon geoblocks Australia from U.S. site as tax change kicks in
- Author: Eleanor Harrison Jun 02, 2018,
Jun 02, 2018, 10:49
The new tax laws will require online retailers like Amazon to apply the 10% GST to goods bought on global sites and shipped to Australia.
From that date, Australia will impose a 10 percent consumption tax on online retailers for goods bought from overseas sites and shipped to Australia.
Just how the world's overseas online retail giants would react to Australia's new (and controversial) GST rules had since been confined to the realm of speculation. until now.
Based on our assessment, we will redirect Australian customers from our worldwide sites to amazon.com.au where they can shop for products sold by Amazon US on the new Global Store, available today. Goods sold on Amazon.com, the USA site, will cease shipping to Australia on July 1.
Under new GST collection laws, online retailers will be forced to apply the 10 percent GST to goods purchased on global sites and shipped to Australia.
The retailer said it would compensate by opening a "global store" for Australians, adding an extra four million items previously available only on its American website.
He said the company 'had to assess the workability of the legislation as a global business with multiple worldwide sites'.
Amazon no longer allowing Australian shoppers to buy digital content through its main Amazon.com website will be a serious blow to people who purchased ebooks legitimately.
Amazon has decided that rather than try to collect Australia's Goods and Services Tax (GST), it's going to force locals to shop only at its Australian store.
"A number of other countries are taking a similar approach and adopting a vendor collection model to collect GST from low-value imported goods".
"A level playing field will help Australian businesses grow and create more jobs and opportunities", the Treasurer's spokesperson is reported to have said.
In a statement issued to the ABC, Amazon said it regretted the move and the inconvenience to customers accustomed to visiting Amazon's global online stores.
This is obviously a bit of a blow for Aussie shoppers - the USA version of the site has a vastly larger selection of goods available, many of which were cheaper even after factoring in shipping costs.