"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 worldwide sites", said an Amazon spokesperson.
The GST amendment lowers the current minimum spend for GST inclusion from $1,000 to $1 in response to backlash from local retailers.
Australian Amazon customers will soon no longer be able to buy from Amazon US. The company said today that shoppers in Australia will be redirected to its local site, Amazon.com.au, and that its worldwide sites, including Amazon.com, will no longer ship to Australian addresses.
Ms. Wong, the visually impaired Amazon customer, said the company's main site offered products she just couldn't get from Australian retailers, including many created to help visually impaired people like her. Amazon has made this move primarily due to new GST rules that will force them to apply a 10% GST to goods purchased on global sites and shipped to Australia.
"The government doesn't apologise for ensuring multinationals pay a fair amount of tax here in Australia", he said. Hundreds of thousands of customers will lose access to their ebooks on July 1st because Amazon does not allow customers to transfer Kindle purchases from one country to another.
The new legislation requires any business which generates more than $75,000 in sales will be required to register with the ATO - a category that Amazon would clearly fall into.
The global store has more than four million items, however Amazon US has 480 million products.
"eBay's GST solution. allows imports to Australia to continue without any structural barriers, redirects or blocks to the buyer experience", he said.
Australian shoppers using Amazon's worldwide site will be unable to place orders, with the retail giant stopping shipping due to new GST rules.
Australian Treasurer Scott Morrison announced the change in April 2017, eight months before Amazon opened its Australian unit.
At 1422 AEST, shares in local e-commerce site Kogan.com were up 11 cents, or 1.2 per cent, at $9.18, while shares of electronics retailers JB Hi-Fi and Harvey Norman were up about 2.3 per cent and 1.0 per cent, respectively.