Amazon Shuts Out Australians, Blames GST Rules

June 1, 2018 Taxation in Australia

Amazon tax AustraliaCANBERRA – Australia’s new tax rules have led Amazon to shut out Australian shoppers.

On May 31st the international online retailer Amazon announced that it would be geo-blocking Australian shoppers from their US website.

Users located in Australia would still be able to us the Australian section of Amazon.

Amazon is taking the move to lessen the tax compliance burden arising from Australia’s new rules regarding GST on internet purchases.

The Australian government has set in place new rules to mandate that online retailers reaching a pre-set sales threshold must register for GST in Australia, and collect the 10 percent tax from all sales made in Australia.

Previously goods worth less than AUD 1000 and purchased overseas could be brought into the country without facing the tax.

The Treasurer of Australia Scott Morrison has claimed that the tax on online purchases would level the playing field between overseas retailers and local businesses.