NEWS: Amazon will redirect Australian online shoppers to local websites
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Amazon (AMZN.O) said on Thursday that starting on July 1, it will force Australians to use its Australian website instead of its larger US website to avoid new sales tax on specific imports.
Amazon says that once the 10% Goods and Services Tax (GST) applies from FY 2018-2019 to online imports worth less than A$ 1,000 (US$ 756), the company will redirect Australian shoppers to the newly launched Australian website. .
So far, GST applies only to most goods sold in Australia, and imports worth more than A$1,000, which makes imports of relatively low-cost products cheaper than the same goods in local stores.
“Some other countries are also adopting a similar approach to collect goods and services taxes on low-priced imports in the seller’s charging mode,” a spokesman for Australian Finance Minister Morrison said in an e-mail.