Global online retailer Amazon is planning to stop its international shopping service for Australia starting 1 July, following new GST rules targeting international retailers.
As per the new GST policy, overseas retailers need to pay 10% tax to the Australian Government for all overseas purchases under $1,000.
The company will stop delivering products to Australian customers from other countries, as well as restrict Australian customers from accessing US and other international websites, where products are cheaper compared to the Australian site, reported The Guardian.
The company will continue to operate its Australian store following the commencement of the GST rule.
Amazon spokeswoman was quoted by the news daily as saying: “We have had to assess the workability of the legislation as a global business with multiple international sites.
“From 1 July, we will be redirecting Australian customers from our international Amazon sites to amazon.com.au.”
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As part of this decision, the retailer will apply the ban to all international shipments to Australian addresses.
This implies that customers holding virtual private networks (VPN) that hide their location will only be able to look at overseas websites but not be able to ship them to their Australian address. However, if customers have an overseas address, they can purchase from international websites and have them shipped there.