Amazon to hike sellers’ fees as it passes on UK digital tax
AMAZON has said it is hiking fees for people who sell items via its website next month as it passes on the cost of the UK’s tech tax.
In a notice to sellers posted on its site yesterday, Amazon said it had absorbed the cost of the digital services tax since it was introduced in spring, while it was continuing discussions with the Government “to encourage them to take an approach that would not impact our selling partners”.
However, now that the tax had been legislated, Amazon said it would be increasing referral fees, storage fees and fulfilment fees by 2pc in the UK to reflect this additional cost. The move is set to particularly hit sellers who sign up to “Fulfilment by Amazon”, and send their goods to Amazon to store, ship and handle returns.
It follows a similar step by the giant retailer in France, when the French government’s own digital services tax was adopted.
Amazon said sellers would not be charged retrospectively, but that, from Sept 1, UK fees would increase.
Amazon has not been alone in piling pressure on governments to avoid unilateral taxes on digital sales.
Countries have decided to introduce their own taxes after talks at an OECD level over digital taxation stalled.
In June, the US called a halt to the discussions, citing a lack of progress.