"This will allow us to provide our customers with continued access to worldwide 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". This rule now exists, but only on purchases over $1000.
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 has today announced that from July 1st, Australian shoppers will no longer be able to use Amazon.com (as well as all of the other overseas Amazon sites).
From 1 July, when Australia's new GST regulations kick in, Australian consumers shopping on Amazon global sites will be redirected to the local Australian site. While Amazon did not specifically mention this, the ban will most likely apply to other Amazon online stores (such as those for Germany, UK, Japan, etc.), as goods bought from those stores are also susceptible to the same tax.
'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'.
Amazon no longer allowing Australian shoppers to buy digital content through its main Amazon.com website will be a serious blow to people who purchased ebooks legitimately.
Dr. Minifie, the economist, said that Amazon would probably continue to build a healthy customer base in Australia despite the change.
A spokesperson for Treasurer Scott Morrison said the new GST regulations "level the playing field" for Australian businesses.
The Australian Amazon site provides access to the more than 60 million products.
The government would not back down on the new tax rules, which would raise AU$300 million a year, Morrison said.
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.
The move, which attempts to level the playing field between local and global retailers, has posed issues to Amazon's worldwide selling scheme.
In a statement about the change, Amazon said it regretted "any inconvenience this may cause customers".