Amazon to block Australians from using US site starting July 1

01 Jun
2018

You might want to start scheduling your online shopping – starting July 1, Amazon will block Australians from its global site in response to the new GST changes.

In a month, Australian shoppers will be redirected to Amazon’s local platform, Amazon.com.au, due to the imposition of 10 percent tax on all online goods purchased overseas. Previously, the GST only applied to those worth above $1,000.

“While we regret any inconvenience this may cause customers, we have had to assess the workability of the legislation as a global business with multiple international sites,” a spokesperson for Amazon said.

However, over four million products sold by Amazon US on the new Global Store will be made available on the Australian site. “This will allow us to provide our customers with continued access to international 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.”

Fellow online trading platform eBay said on Thursday said it was working on ways to collect GST that wouldn’t restrict any seller. “This requires major changes to eBay’s global systems and we are working to have these ready by 1st July,” an eBay spokeswoman said. “eBay’s GST solution will allow us to collect GST in any currency, from any seller, from any eBay site.”

In 2016, the Australian government introduced a law to tax digital services such as Amazon Web Services’ cloud solutions and Netflix.