Amazon blocks Australia from its USA site due to new GST rules

Amazon blocks Australia from its USA site due to new GST rules

July 1 marks the date that new GST rules come into play, with 10 per cent GST applying to all online purchases shipped into Australia from overseas. Amazon has made this move primarily due to new GST rules that will force them to apply a 10% GST to goods purchased on worldwide sites and shipped to Australia.

It was the move we all dreaded was coming: Australian shoppers will no longer be able to shop on Amazon's U.S. site as the company shifts focus to its local offering.

Amazon announced plans to block Australian users from ordering from its main U.S. store (Amazon.com) and will redirect customers to its local Australian site (Amazon.com.au) instead.

Starting in July, Australians will be blocked from ordering items on Amazon's United States site. The tax now only applies to purchases above AU$1,000 ($757).

Amazon said Australian customers will still be able to buy products sold by Amazon US on the Amazon Global Store.

"Amazon's huge scale leaves them in a far better position" than other overseas-based retailers, he said.

Amazon will soon be sub-prime, if you live in Australia.

But even with the changes, the number of products available will be a fraction of what's on sale globally.

Both eBay and Amazon previously indicated that they may have to block Australian buyers due to the changes - and Amazon today confirmed that it would redirect Australian customers from its worldwide sites to Amazon.com.au.

Amazon.com.au has roughly a tenth the selection of Amazon's USA website, with about 60 million products compared to almost half a billion.

"If multinationals aren't forced to pay their fair share of tax, they will have a competitive advantage over retailers here in Australia, on our own main streets and in our shopping centers".

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 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. Local media reports that these store chains have heavily lobbied the government in recent years to extend the GST to online products sold by vendors situated overseas, to level the playing field.

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