Amazon to escape new online tax
BRITAIN has introduced one of the lowest online taxes in the world – and Amazon will escape it.
The digital services tax of two per cent only applies to certain services.
Amazon has increased its referral fee, landing the bill with firms that sell through its website. The levy does not apply to products Amazon sells itself.
Paul Monaghan, CEO of the Fair Tax Mark scheme, said: “The levy needs to substantially increase to make up for the profits shifted and tax avoided.”
Amazon said: “The way the Government designed the tax will directly impact the businesses (using) our services.”
The Treasury insisted the scheme “ensures tech firms who derive value from the UK pay their fair share of tax”.