Originally written by Timothy Adler on Small Business
Entrepreneurs say that Amazon has “shafted” small businesses by passing on the Government’s new 2 per cent digital sales tax.
Instead of forcing the internet giant to pay its fairer share of corporation tax, all the new digital sales tax has done is hiked up fees to sellers, “punishing small businesses in a crisis,” according to Amanda Thomson, founder of Thomson & Scott, which sells alcohol-free and sparkling wine on Amazon.
The Government launched the 2 per cent digital sales tax in April with the aim of getting internet giants to pay their fair share of tax. At the time, Amazon UK country manager Doug Gurr warned all that would happen was that his company would pass the levy onto its small business sellers, which is exactly what has happened. The same thing happened in France.
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Amazon has told UK small businesses using its services to sell products that it will increase its fees by 2 per cent. Some say they will have to pass on the cost to consumers.
“This self-employed group, who already pay their taxes in the UK, have become collateral damage