Upcoming fee changes in the UK following introduction of Digital Services Tax
Earlier this spring, the UK government introduced a Digital Services Tax (“DST”). While the legislation was being passed, and as we continued our discussions with the government to encourage them to take an approach that would not impact our selling partners, we absorbed this increase.
Now that the legislation has passed, we want to inform you that we will be increasing Referral fees, Fulfilment by Amazon (FBA) fees, monthly FBA storage fees and Multichannel Fulfilment (MCF) fees by 2% in the UK to reflect this additional cost. We will not apply the increased charges retroactively, but starting 1 September 2020, the fee types listed above will increase. Learn more here.
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This tax was brought in to try to make companies like Amazon, who earn huge profits while contributing very little tax in the UK, pay what is due. They were not designed to be passed on to the sellers, who are mainly small businesses, who already have to pay 20% in VAT plus corporation tax in the UK. This is outrageous and shows the contempt that Amazon has for the UK and it’s marketplace sellers.
