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Digital Services Tax

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Manny:
The UK Digital Services Tax that seeks to impose taxes on the likes of Amazon, eBay, Facebook, etc. is moving ahead it seems.

As an Amazon seller, I got this today:


--- Quote from: Amazon ---Dear Seller,

We wanted to update you on some changes the Government has introduced in the UK.

This spring, the Government brought in a 2% Digital Services Tax (“DST”) in the UK which will impact fee rates on Amazon UK. While the legislation was being passed, we continued our discussions with Government to encourage them to take an approach that would not impact our Selling Partners and absorbed the increase.

Now that the legislation has passed, we wanted to let you know we will be increasing Referral fees, Fulfilment by Amazon (FBA) fees, monthly FBA Storage fees and Multichannel Fulfilment (MCF) fees by 2% for items sold in the UK to reflect this additional cost. We will not apply the increased charges retroactively, but starting 1 September, 2020, the above fee types will increase.

For example, on an item for which the referral fee on Amazon.co.uk is currently 15.0%, you will pay a fee of 15.3%, and for a parcel with a current UK rate of £2.27 (standard parcel ≤0.5kg), you will pay a fee of £2.32 starting 1 September, 2020.

For more information about these upcoming changes, including fee definitions, examples and FAQs, refer to our Help page: https://sellercentral-europe.amazon.com/gp/help/G366DPWD5P5QFDJP.

Regards,

Amazon Services Europe
--- End quote ---

So Amazon are passing it onto sellers instead of sucking it up. Most sellers will pass it along to customers I expect. So the tax on Amazon will end up a tax on their sellers and customers.

And it wont stay at 2%...........

Steveboy:

--- Quote from: Manny on August 05, 2020, 11:33:08 AM ---The UK Digital Services Tax that seeks to impose taxes on the likes of Amazon, eBay, Facebook, etc. is moving ahead it seems.

As an Amazon seller, I got this today:


--- Quote from: Amazon ---Dear Seller,

We wanted to update you on some changes the Government has introduced in the UK.

This spring, the Government brought in a 2% Digital Services Tax (“DST”) in the UK which will impact fee rates on Amazon UK. While the legislation was being passed, we continued our discussions with Government to encourage them to take an approach that would not impact our Selling Partners and absorbed the increase.

Now that the legislation has passed, we wanted to let you know we will be increasing Referral fees, Fulfilment by Amazon (FBA) fees, monthly FBA Storage fees and Multichannel Fulfilment (MCF) fees by 2% for items sold in the UK to reflect this additional cost. We will not apply the increased charges retroactively, but starting 1 September, 2020, the above fee types will increase.

For example, on an item for which the referral fee on Amazon.co.uk is currently 15.0%, you will pay a fee of 15.3%, and for a parcel with a current UK rate of £2.27 (standard parcel ≤0.5kg), you will pay a fee of £2.32 starting 1 September, 2020.

For more information about these upcoming changes, including fee definitions, examples and FAQs, refer to our Help page: https://sellercentral-europe.amazon.com/gp/help/G366DPWD5P5QFDJP.

Regards,

Amazon Services Europe
--- End quote ---

So Amazon are passing it onto sellers instead of sucking it up. Most sellers will pass it along to customers I expect. So the tax on Amazon will end up a tax on their sellers and customers.

And it wont stay at 2%...........

--- End quote ---

 :thumbsup: Welcome to the UK.. expect lots more taxes on the way soon to pay for the cover shit..

andrewfi:
So the UK government is trying to get Amazon (and others) to pay a reasonable amount of tax and Amazon isn't actually paying the tax - vendors are.

So you know whether Amazon have increased prices of their own offerings or have they eaten those costs? I can see that the services I use don't seem to have done, yet,  but their physical products I can't tell.

Markje:

--- Quote from: andrewfi on August 06, 2020, 02:33:20 AM ---So the UK government is trying to get Amazon (and others) to pay a reasonable amount of tax and Amazon isn't actually paying the tax - vendors are.

So you know whether Amazon have increased prices of their own offerings or have they eaten those costs? I can see that the services I use don't seem to have done, yet,  but their physical products I can't tell.

--- End quote ---
So?

In the physical world this isn't any different. You even get a nice receipt telling you exacly how much you paid in taxes for your purchases. why is this any different in the online world.

Travel companies:

Base price: xxxx
VAT : yyyy
tourism tax: zzzz <- this would be new in amazons case
total: aaaa

andrewfi:
Mark, in principle I don't disagree but, and there is a but, the British government is concerned that several large online businesses are doing huge business in the UK. Extracting billions of pounds from British buyers and affecting UK based businesses unable to compete with these non-uk businesses.

As I understood it, the idea is to get companies such as Amazon to pay a more representative amount of tax.
Passing the tax on to customers means that the purpose of the new regulations is being sidestepped. Amazon's post tax revenue is unchanged - I am pretty sure that was not the government's intent.

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