Amazon is testing the direct transfer of digital taxes to of French sellers
The French legislature has officially adopted a new tax called a digital tax. This tax is actually targeted at various comprehensive multinational technology companies. Although many companies are very dissatisfied with the digital tax issued by France, the United States and other countries have also proposed similar taxes after the introduction of digital taxes in France. Seeing that Amazon want to circumvent this tax directly is basically not very likely, so Amazon decided to accept the new tax and pass it directly to the seller.
In fact, the original starting point for the introduction of this tax in France is not to increase the burden on enterprises, but to use taxation to balance the competition between large companies and local enterprises. Global multinational giants such as Amazon have a very large voice, so it is difficult for French local e-commerce companies and even the supply chain to confront Amazon. However, what the French regulators never expected was that Amazon turned and decided to pass all the new taxes from France to third-party sellers on the Amazon platform. This will make France’s policy appear very useful but the reality is very skinny, and it is so the current French third-party sellers began to worry.
Amazon is also announcing the official announcement on the issue of passing on the digital tax. In the statement, Amazon said that the French digital tax has made Amazon have no choice. Amazon claims that this tax is mainly for Amazon’s market services for companies, and if it is to pay taxes, it can only be passed to the platform’s sales partners. Amazon is still clamoring for French regulators: French and SMEs may be at a competitive disadvantage compared to other countries or regions after increasing their digital taxes. The implication is that if France insists on continuing to implement the digital tax, the ultimate damage may be the interests of French companies, not the destruction of Amazon.
Via: CNBC
