wnol.info June 21 2018

Amazon to stop Aussies shopping from its global websites

June 21 2018, 12:22 | Alonzo Simpson

Getty Images

Getty Images

Under the new GST collection laws, online retailers like Amazon will be forced to apply the 10 percent GST to goods purchased on global sites and shipped to Australia.

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.

In a statement about the change, Amazon said it regretted "any inconvenience this may cause customers".

The online retail giant will direct Australian shoppers away from its United States and UK stores to its smaller local site from July 1 when the goods and service tax is extended to all imported e-commerce items.

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.

Amazon is getting a bit of flack this afternoon over its intentions to re-direct Australian visitors to their global site to their Australian arm thanks to upcoming changes to GST on imported goods.

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New Zealand followed suit this month, announcing that foreign companies will be asked to pay GST on goods sold online to New Zealanders from 1 October, 2019.

New Zealand had also already applied GST to digital services from offshore, such as Netflix in 2016.

The tax is created to level the playing field for local retailers like JB Hi-Fi and Harvey Norman, who say worldwide online sellers get a competitive advantage by not having to include GST in their prices.

"Amazon Global Store will allow Australian customers to shop on amazon.com.au for over four million items that were previously only accessible on amazon.com". "This will allow us to provide our customers with continued access to worldwide selection and remain compliant with the law".

Ms. Wong, the visually impaired Amazon customer, said the company's main site offered products she just couldn't get from Australian retailers, including many created to help visually impaired people like her.

"A level playing field will help Australian businesses grow and create more jobs and opportunities", the Treasurer's spokesperson is reported to have said.

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