It also said that in addition to the 60 million items available on the Australian site, "the global store will allow Australian customers to shop on amazon.com.au for over four million items that were previously only accessible from amazon.com". The change will be put into effect to charge GST on "low value imported goods" as of July 1st according to the ATO, and it seems Amazon is not keen to fall afoul of the Australian government. In addition to allowing Amazon's USA arm to bypass complicated GST obligations, it also forces more customers to use the Australian service, therefore boosting its sales performance.
Last year, it was announced that Aussies would have to pay GST on all overseas purchases from July 1, 2018, leaving the country's online shopping future uncertain in the process.
According to the The Sydney Morning Herald, Amazon's United States site provides access to roughly 500 million items, as opposed to the Aussie version, which features around 60 million products.
eBay also stated its case against the Bill which applied GST to overseas sales. "This will allow us to provide our customers with continued access to global selection and remain compliant with the law which requires us to collect and remit GST on products sold on Amazon sites that are shipped from overseas".
"This isn't an anti-trade move by the Australian government", he said.
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We have taken this step to provide our customers with continued access to global selection and allow us to remain compliant with the law which requires us to collect and remit GST on products sold on Amazon sites that are shipped from overseas.
He said the company 'had to assess the workability of the legislation as a global business with multiple worldwide sites'.
Shares in local e-commerce site Kogan.com gained 0.2 per cent to $9.09, while shares in electronics retailers JB Hi-Fi and Harvey Norman rose 2.4 per cent to $23.99 and 1.7 per cent to $3.60, respectively.
If you purchase 100 books from the Amazon.com website, and use a Kindle e-reader or the Kindle app for Android/IOS you will only be able to read those books and will not be able to buy new ones.