Tuesday , June 5 2018

Amazon to ban Aussie visitors from its global marketplace due to GST changes taking effect 1 July 2018


Amazon is getting a bit of flack this afternoon over its intentions to re-direct Australian visitors to their global site to their Australian arm thanks to upcoming changes to GST on imported goods.

We’ve been following the intent of the Australian government to add a charge to imported parcels whose value falls beneath the previous $1,000 threshold for some time. The change will be put into effect to charge GST on ‘low value imported goods’ as of July 1st according to the ATO, and it seems Amazon is not keen to fall afoul of the Australian government.

The change to Amazon’s website traffic, is being communicated to Amazon’s international customers with the company stating that from the 1st of July Aussie visitors to Amazon’s global .com site will be redirected to the Australian .com.au site instead.

According to ZDNet who have sourced the email, the company said

While we regret any inconvenience this may cause, from 1 July we will be redirecting Australian customers from our international Amazon sites to amazon.com.au where you can shop for products sold by Amazon US on the new Amazon Global Store, available today.

We have taken this step to provide our customers with continued access to international selection and allow us to 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 new legislation requires any business which generates more than $75,000 in sales will be required to register with the ATO – a category that Amazon would clearly fall into.

Amazon has put a good deal of effort into launching locally here in Australia with fulfillment centres first in Victoria and more recently in Sydney’s south western suburbs. The launch hasn’t exactly been a winner with online customers, most of whom have found it’s often cheaper to purchase through the US site and pay shipping to Australia.

Long story short, if you’re wanting to purchase anything from Amazon you’d better get onto it before the 1st of July or start planning your trip to the US.

Via: ZDNet.

Daniel Tyson   Editor

Dan is a die-hard Android fan. Some might even call him a lunatic. He's been an Android user since Android was a thing, and if there's a phone that's run Android, chances are he owns it (his Nexus collection is second-to-none) or has used it.

Dan's dedication to Ausdroid is without question, and he has represented us at some of the biggest international events in our industry including Google I/O, Mobile World Congress, CES and IFA.

13 comments

  1. NewcastleGardia

    The Tax cover is “BS”. The Amazon Australia site has been an unmitigated “Flop” with people in Australia more often than not buying from the US site with the huge selection of goods (most not available in Australia or via Amazon Aus.), better prices and more often than not faster delivery.
    It’s Simply Blackmail by Amazon to try and salvage already a failed Australian business model.
    Other companies handle imposts of GST successfully, Amazon could and should too.

  2. Will shipping forwarders still work? If Amazon ships to a shipping forwarder with US address, who then on-ships to Australia? Will there be a tax waiting to be paid at customs?

    Amazon AU is expensive and has only a fraction of what’s available on the Amazon US store.

  3. Got the Amazon email today, “from July no more purchases from the USA, you can only only Amazon Australia” – yeah at 2.5 x the price.

    Amazon – They NOW charge $104 US (~$150Au) (with delivery) for a Unicomp keyboard from the USA, and $370 from Australia….

    https://www.amazon.com/Unicomp-Classic-Buckling-Spring-Keyboard/dp/B01MSAR2TX/

    https://www.amazon.com.au/Unicomp-Classic-Buckling-Spring-Keyboard/dp/B01MSAR2TX/

  4. Can’t say I’m surprised. Now I wonder how many other international retailers will follow suit. I also wonder what it means for digital content from amazon companies. Hope it doesn’t mean I need to use a VPN to access content I already own.

  5. It would be way easier for the Government to track sellers accounts where purchases are made, and require banks to take an extra 10% on behalf of the seller.

  6. Considering I only use Amazon to buy items in the USA that I cannot get here I have to always use a third party for shipping anyway, such as HopShopGo. So I have a better chance of not paying any extra tax now.

  7. Well that sucks

  8. If Amazon wants to drive the Australian consumer uptake of anti-geoblocking practices, they are definitely going the correct way about it.

    • Even if they still allowed shipping to Australian addresses (which I’m sure they’ll also block), Australian government will still hold your parcel until you pay them the 10% GST that will now be required by law.

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