I have used this system.
I have a legitimate US address (I can receive mail from there) and this address is used as my default address which means I can buy books from the US store. My credit cards are issued from Australia, and these are charged when buying US books if I have run out of gift card credit. No need for a proxy ip or VPN. I always download to PC rather than direct to kindle, as the Amazon system knows you are not physically in the US and so will apply a $1.99 charge if you download direct to the kindle.
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