November 26, 2020

Google, Apple, and Amazon responses UK digital tax and passes digital tax on to merchants and consumers

2 min read

The UK has recently added a digital service tax based on the original value-added tax, and digital service tax is currently a new tax for technology companies in some countries.

Currently, known markets that have introduced or plan to introduce digital service taxes include India, the United Kingdom, Turkey, France, etc., of course, there are more countries under discussion.

The digital service tax is essentially a tax set for multinational technology giants. Some countries believe that these multinational technology giants use policies to pay very low taxes.

Therefore, some countries directly refer to the value-added tax rate of technology companies, some are adding digital taxes, and some are increasing the value-added tax rate and increasing the digital tax.

The UK has already been protested by technology giants such as Google, Apple, and Amazon during the discussion of the digital tax.US Air Force bug bounty

At present, the UK digital tax has been implemented, and Google, Apple, and Amazon directly pass the digital tax on to merchants, advertisers, developers, and consumers.

For example, Apple has begun to increase the price of apps in the UK market and adjust the rules for sharing with developers. Developers and consumers will pay for the increased taxes and fees.

Amazon is making a fuss about the transfer freight, fulfillment fee, and storage fee. The corresponding digital tax will be directly transferred to this part of the cost and the merchant will bear it.

On the Google side, it is to increase the cost of advertising on Google and YouTube for British corporate customers. Simply put, it is an increase of 2% on the original basis.

In fact, the transfer of the digital tax is also a manifestation of the pressure on the British government by the technology giants. The British government originally believed that the technology giants paid too little tax.

At present, more countries and markets are brewing digital taxes, and it is believed that these giants will do the same at that time, but this will easily attract the attention of antitrust agencies.

Via: Business Insider, Campaignlive