Wednesday, 20 June, 2018
  • Finance
  • Amazon just blocked Australians from shopping on most of Amazon

Amazon just blocked Australians from shopping on most of Amazon

Amazon Australia It's Official: Amazon US Website Blocked In Australia
Kelvin Reese | 01 June, 2018, 05:16

Goods sold on Amazon.com, the U.S. site, will cease shipping to Australia on July 1.

Until now, GST has applied only to most goods sold in Australia and imported goods worth over A$1,000, making relatively low-priced imported items cheaper than their equivalents in local stores.

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.

Amazon will block Australia-based customers from buying products on its overseas sites when the goods and services tax is applied to all imported e-commerce items in July.

"Amazon Global Store will allow Australian customers to shop on amazon.com.au for over 4 million items that were previously only accessible on amazon.com".

Amazon only launched a local Australian site last December, shipping from a warehouse in Melbourne with another planned in Sydney.

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"It's been argued that this is like an import tariff, but for years in Australia we've had something of a reverse: Local retailers paying a tax that foreign retailers haven't", he added. This coincides with changes to the Online Goods Tax that require online retailers to apply the 10 per cent GST to all online purchases shipped to Australia from overseas.

He said the company 'had to assess the workability of the legislation as a global business with multiple worldwide sites'.

It is understood that Amazon baulked at the massive administrative burden of tracking Australian GST from all overseas transactions.

"This will allow us to provide our customers with continued access to worldwide selection and remain compliant with the law which requires us to collect and remit GST on products sold on Amazon sites that are shipped from overseas".

The move comes after the Australian government has expanded a local tax named the Goods and Services Tax (GST) to online goods shipped into the country.

The move, which attempts to level the playing field between local and global retailers, has posed issues to Amazon's worldwide selling scheme.

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