Amazon plays dumb to new GST rule
The Australian reported that the Australian Treasurer, Scott Morrison said that he found it hard to believe that Amazon lacked the technology skills needed to properly charge GST on goods shipped to Australia. Nor did they lack the time needed to prepare. Morrison personally met five times with Amazon over the last 12 months, so they cannot claim to have been surprised by the new GST rules coming into effect on 1 July. It looks to us like Amazon is engineering a public tantrum because they don’t want to pay tax. We sympathise with the notion of a tax-free business, but taxes (and death) are inevitable; the important part is to make sure that they are applied evenly, so they don’t distort the economy. As much as we like GST-free goods coming from overseas, the GST loophole was putting heavy stress on specialty retailers in Australia and it is good to see it (finally) fixed.