Ama­zon to hike sell­ers’ fees as it passes on UK dig­i­tal tax

The Daily Telegraph - Business - - Front Page - By Han­nah Boland

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.

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