Amazon said on today, May 31 that it will force the Australians to use its site for the country instead of the larger American site, starting July 1 in order to avoid new sales tax on some imported goods.
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 international sites. – Spokesperson, Amazon
The online retail company said that it should have redirected Australians to the new Australian site right after the 10% GST (Goods and Services Tax) was issued. The tax was applied to the imported online products worth below A$1,000 or US$756 starting the 2018-19 financial year.
The Amazon Australia website started taking orders from the last December. It has been so far criticised for not just having a thin product range, but as well as uncompetitive costs. The transition is supposed to change that now!
It may even benefit the Australian retailers who have faced a downgrade of their businesses since the rise of online shopping. Many of them campaigned to get GST applied to all products shipped from overseas.
A spokeswoman for Treasurer Scott Morrison wrote in an email: “The government doesn’t apologize for ensuring multi-nationals pay a fair amount of tax here in Australia. A number of other countries are taking a similar approach and adopting a vendor collection model to collect GST from low-value imported goods.”
According to a report from Amazon, its Australian site is offering 60 million products in 23 categories as compared to the half a billion products via its American site.