Australia will apply a 10% tax to online purchases of products from overseas sellers. In response, Amazon customers will be limited to buying in the Australia marketplace.
Amazon Customers and Australia GST
Effective July 1, the day the new GST kicks in, Amazon customer will no longer be able to purchase goods from marketplaces outside Australia. Instead, customers will automatically be redirected to amazon.com.au.
The change, known as “geoblocking”, will limit Amazon customers in Australia to purchases of goods from domestic sellers and vendors. While the move surprised some, it may be a sign that Amazon Australia is confident its local supply chain has matured. When it launched in late 2017, some complained that limited initial inventory meant prices were not competitive. Amazon, however, greatly expanded its number of sellers and matured its supply chain since then.
Local retailers, meanwhile, see the application of the GST to online purchases as only fair.
Start a FREE Trial