Quote:
Originally Posted by GlenBarrington
As an American, I'm not sure I fully understand this issue. Amazon charges tax in any US State in which they have a physical presence, and the taxes charged when I purchase from my home in Illinois is different from the taxes charged when I purchase when in Texas. I have no idea what physical presence Amazon has in either state!
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The issue is that Amazon.com is a US company. The Australian government passed legislation according to which any company located outside of Australia which sells more than $75,000 per year to Australian residents is required to collect the same 10% goods and services tax (GST) that a company located in Australia is required to collect.
Amazon is refusing to do so and from July 1 will no longer allow sales on its US site to be shipped to Australia. Australian consumers will have to use Amazon's Australian site.
The burden of collecting and remitting taxes for another country is one that many companies will choose not to undertake.