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Amazon passes on the new digital services tax to its UK sellers

07 August 2020
Issue: 4756 / Categories: News

Amazon has hiked its fees for UK sellers on the Amazon platform to cover the new digital services tax introduced in April. An announcement on the multinational’s services website states:

‘The government brought in a 2% digital services tax in the UK which will impact fee rates on Amazon UK. Starting 1 September, 2020, we will be increasing referral fees, fulfilment by Amazon (FBA) fees, monthly FBA storage fees and multichannel fulfilment fees by 2% for items sold on Amazon UK to reflect this additional cost.’

Miles Dean, head of international tax at Andersen UK, said: ‘It should come as no surprise that Amazon is passing the cost of this new tax onto its customers. It might not be fair but Amazon won't be the only online company to be passing this cost on. Any prudent business would do the same, especially a listed company whose stakeholders would expect the cost to be passed on.’

Issue: 4756 / Categories: News
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