In response to GST laws.
Amazon will block Australian customers from the company’s international websites, ahead of the new GST laws that will come into effect from 1 July, 2018.
The law will require any overseas business with a turnover greater than $75,000 to pay GST on all good sold, including items purchased under the low-value threshold of $1,000.
In a company statement, an Amazon spokesperson said, “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 international sites.”
Customers will now have access to Amazon US and other overseas websites on the new global store. However, it will only offer four million items, in comparison to the 480 million products on the Amazon US site alone.
“This will allow us to provide our customers with continued access to international 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,” the spokesperson continued.
Commenting on the announcement, National Retail Association (NRA) CEO Dominique Lamb said the NRA has long advocated for changes to the GST for online purchases as arrangements in place were unfair.
“Australian retailers were getting the rough end of the pineapple compared with overseas competitors and the new laws to come into effect from July 1 will bring that to an end.
“Amazon’s announcement demonstrates that Australian retailers are more than competitive with international rivals when operating on a level playing field. Large overseas retailers have been receiving an unfair advantage over local businesses, but that will soon end when they are forced to pay GST on items shipped into Australia.”