New GST rule disallows Australians from shopping in Amazon US site w.e.f July 1
From July 1, 2018, Australian shoppers will be blocked from making an online purchase from the US site of Amazon. The US site will no longer ship the goods to Australia due to the amendment in tax regulation which will be in effect from July 1.
The new regulation has been released as “Amazon tax” where 10% will be charged as GST on the overseas goods brought in by the Australian retailers or shoppers. Currently, GST is charged on goods shipped on and above $1000 AUD, but after the new legislation on tax, every online purchase made from overseas will attract a GST.
The tax is basically levied to promote more local business, who face extreme competitions from International online sellers. Amazon launched its Australian site last December with near about 60 million products. To address the Australian market spokesperson of Amazon stated about re-directing the shoppers to the Australian site rather than US site. They said;
“As a result of changes to Australian GST law on 1 July, international shopping options for Australian customers will change. While we regret any inconvenience this may cause customers, we have had to assess the work ability of the legislation as a global business with multiple international sites.”
They further added,
“Based on our assessment, we will redirect Australian customers from our international sites to amazon.com.au where they can shop for products sold by Amazon US on the new Global Store, available today. 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.”