Amazon to restrict Australian customers to local site in July

Amazon to restrict Australian customers to local site in July

Amazon to restrict Australian customers to local site in July

"We have taken this step to provide our customers with continued access to global selection and allow us to 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 company said.

The online retail giant said it would redirect Australians to the newly launched Australian site once the 10 percent Goods and Services Tax (GST) was applied to imported online goods worth under A$1,000 ($756) from the start of the 2018-2019 financial year.

Australian shoppers using Amazon's global site will be unable to place orders, with the retail giant stopping shipping due to new GST rules.

Shoppers visiting the USA store Amazon.com will be redirected to the Australian version, Amazon.com.au, from July 1 when Australia starts applying new tax rules, Amazon said in a statement on Friday.

While Australians will be blocked from Amazon's global websites, they will be able to buy from the retailer's Australian website. Previously, the tax was only applied to purchases over AU$1,000.

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

Amazon said it regretted the change which it blamed on the new tax rules.

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"I think it is disappointing that Amazon have taken this out on consumers in Australia but that is their commercial position", Mr Morrison said.

Amazon is launching a global store accessible to Australian customers, where products from its retail site will be available.

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.

"The government doesn't apologise for ensuring multinationals pay a fair amount of tax here in Australia", he said.

A Productivity Commission inquiry concluded that given the decision to collect GST on low value imported goods, "the legislated model is the most feasible among the imperfect alternatives at this time".

This is obviously a bit of a blow for Aussie shoppers - the United States version of the site has a vastly larger selection of goods available, many of which were cheaper even after factoring in shipping costs.

"A level playing field will help Australian businesses grow and create more jobs and opportunities".

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