AWS announces plan to launch AWS Australia for smoother billing and contracting

AWS Australian account holders may soon receive invoices from AWS Australia and be charged GST, instead of AWS Inc.
Written by Aimee Chanthadavong, Contributor
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Amazon Web Services (AWS) has quietly announced plans to launch AWS Australia, as part of what the company is proposing as a corporate reorganisation so customers can be contracted to a single entity for AWS cloud services, professional services, and training.

Under the plans, subject to approval by the Australian Foreign Investment Review Board, AWS wants to stand up AWS Australia as an affiliated legal entity of AWS Inc and see it appointed as a reseller of AWS cloud services for accounts based in Australia in replacement of AWS Inc. 

The cloud services that are expected to be provided by AWS Australia will include Amazon Connect, Amazon Pinpoint, Amazon SNS, Amazon SES, and Amazon Chime services, except for public switched telephone network-related features, which will continue to be sold by Amazon Media Communications Services LLC (AMCS) and invoiced by AWS Inc.

In an email to existing AWS Australian account holders, AWS said the reorganisation would mean customers purchasing AWS cloud services will be purchasing from AWS Australia instead of AWS Inc. at launch, and therefore existing customer agreements with AWS Inc will be replaced with a new customer agreement with AWS Australia.

The company also noted that continued use of AWS cloud services following the launch would constitute as customers' acceptance of the new agreement.

"We regularly review our business structure to ensure that we are able to best serve our customers. AWS plans to launch an Australian Seller of Record to support the growing adoption of cloud computing by enabling our customers in Australia to purchase AWS Cloud services from an Australia based company," an AWS spokesperson told ZDNet.

In preparation for the change, AWS informed business or government customers that they would need to update their Australian Business Number and other taxation information on the AWS Bill Dashboard, while individual and non-business accountholders will be advised to ensure their billing and contact addresses are up to date.

Invoices previously issued by AWS Inc will begin being issued by AWS Australia, which will list the details of the new company as a separate legal entity, plus all customers with accounts based in Australia will be charged 10% Goods and Services Tax (GST) on services sold by AWS Australia. For services sold by AMCS LLC, the current tax experience will continue, the email to customers assured.

Pricing will remain in US dollars, but those who pay by credit card will pay in Australian dollars by default, and those who pay by invoice will have the option to pay in either Australian or US dollars.

The changes, however, will have no impact on how customers receive and use AWS cloud services, with account numbers, content, configuration, access rights, and security settings to remain the same. Customers will also be able to continue to choose the AWS region in which their data is stored.

AWS added the proposed reorganisation will not have an impact on products and services purchased through AWS Marketplace and it will continue to be invoiced by AWS Inc. The only difference is that customers who purchase multiple products from AWS may begin receiving multiple bills: One from AWS Australia and another from AWS Inc. 

While no date has been scheduled for launch, the company said customers will be informed about further updates when available.

AWS first put its roots down in Australia when it launched its first region in 2012.


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