Amazon blocks Australian shoppers

US internet giant Amazon will block Australian shoppers from its international websites to counter new tax laws on online purchases, it announced Thursday.

New rules require internet retailers like the American behemoth to collect a 10 percent goods and services tax on everything bought from overseas sites from July 1, including under the current tax-free threshold of Aus$1,000 (US$760).

As a result, Amazon said Australian shoppers wanting to use its global platforms will instead be directed to its smaller Australian site, which offers much less for sale.

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Amazon reportedly baulked at the massive administrative burden of tracking GST from all overseas transactions.

“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,” it said in a statement.

The retailer said it would compensate by opening a “global store” for Australians, adding an extra four million items previously available only on its American website.

 

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