Amazon to block Aus shoppers from USA website

Australian customers will no longer be able to use the Amazon US website from July 1. File pic. Source Getty ImagesMore

This rule now exists, but only on purchases over $1000.

The company said today that shoppers in Australia will be redirected to its local site, Amazon.com.au, and that its worldwide sites, including Amazon.com, will no longer ship to Australian addresses.

Shoppers visiting the USA store Amazon.com will be redirected to the Australian version, Amazon.com.au, from July 1 when Australia starts applying new tax rules, Amazon said in a statement on Friday. 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.

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

The global store has more than four million items, however Amazon US has 480 million products.

eBay also stated its case against the Bill which applied GST to overseas sales.

"I think it is disappointing that Amazon have taken this out on consumers in Australia but that is their commercial position", Mr Morrison 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 worldwide sites", an Amazon spokesman said in an email.

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

Amazon is launching a global store accessible to Australian customers, where products from its retail site will be available. Hundreds of thousands of customers will lose access to their ebooks on July 1st because Amazon does not allow customers to transfer Kindle purchases from one country to another.

A spokesperson for Treasurer Scott Morrison said the new GST regulations "level the playing field" for Australian businesses.

"If multinationals aren't forced to pay their fair share of tax, they will have a competitive advantage over retailers here in Australia, on our own main streets and in our shopping centers". "That tax revenue is used to fund essential services".

Amazon has also announced a new "global store" section of its site, which is said to give Australian customers access to 4 million additional products that were previously only available in the US.

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