Amazon to block Aus shoppers from USA website

Amazon geoblocks Australia from U.S. site as tax change kicks in

Amazon geoblocks Australia from U.S. site as tax change kicks in

USA giant Amazon, which operates the world's largest online retail site, says it will no longer ship to Australian addresses starting from the aforementioned July 1, 2018 cut-off date.

The changes referred to relate to a decision to scrap the previous $1000 threshold for imposing GST on online purchases from overseas.

The Labour-led government proposes to collect GST on those goods, imposing it at the point of sale and waiving the tariffs and border recovery costs previously applied at the border.

"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 worldwide sites", it said in a statement. 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.

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.

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

The Australian Amazon site provides access to the more than 60 million products.

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The global store has more than four million items, however Amazon US has 480 million products. Amazon has made this move primarily due to new GST rules that will force them to apply a 10% GST to goods purchased on global sites and shipped to Australia.

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

"A number of other countries are taking a similar approach and adopting a vendor collection model to collect GST from low-value imported goods".

From July 1, Amazon will redirect local shoppers trying to visit the likes of Amazon.com and Amazon.co.uk to its much smaller Australian site, thwarting those who enjoy the lower prices and larger range offered overseas.

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

"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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