"As a result of changes to Australian GST law on 1 July, worldwide shopping options for Australian customers will change".

Some internationals have made a decision to comply: Microsoft, for example, began levying GST on app store purchases in February this year.

From July 1, shoppers visiting Amazon.com (and other overseas Amazon sites) will be redirected to Amazon.com.au, which launched late past year.

Amazon's decision is odd given that it manages to deal with 47 different state sales taxes in the US alone.

This is obviously a bit of a blow for Aussie shoppers - the U.S. version of the site has a vastly larger selection of goods available, many of which were cheaper even after factoring in shipping costs.

Amazon said Australian customers will still be able to buy products sold by Amazon US on the Amazon Global Store.

Online retail giant Amazon will block Australian consumers from its global sites to counter new laws forcing it to collect GST on transactions.

"It's been argued that this is like an import tariff, but for years in Australia we've had something of a reverse: Local retailers paying a tax that foreign retailers haven't", he added.

The change to Amazon's website traffic, is being communicated to Amazon's worldwide customers with the company stating that from the 1st of July Aussie visitors to Amazon's global.com site will be redirected to the Australian.com.au site instead.

National Retail Association CEO Dominique Lamb said Amazon's move was a surprise.

"Amazon Global Store will allow Australian customers to shop on amazon.com.au for over 4 million items that were previously only accessible on amazon.com".

He said the company 'had to assess the workability of the legislation as a global business with multiple worldwide sites'.

Amazon says its Australian unit offers 60 million products in 23 categories, compared to the more than half a billion products on its United States site.

A spokesperson for Treasurer Scott Morrison said the new GST regulations "level the playing field" for Australian businesses.

"The government doesn't apologise for ensuring multinationals pay a fair amount of tax here in Australia", he said.


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