Last month, the country passed a 3% tax to the local revenues of almost 30 major companies, of which most are from the US
After France approved a new digital tax on American tech giants, Amazon reacted by passing along the costs to French Amazon sellers. The marketplace is raising seller fees by 3% for thousands of small and medium-sized businesses in France, Ecommerce News reports.
Last month, France passed a 3% tax to the French revenues of almost 30 major companies, of which most are from the US. Amazon has now reacted by introducing higher seller fees for its French marketplace.
The reason for the French government to introduce the digital tax was to level the playing field between big tech companies such as Amazon, Google and Facebook and small and medium-sized enterprises. But now it seems the small Amazon sellers are hurt by this decision.
US President Donald Trump already said that the tax unfairly targets American companies, but according to CNBC, economists also warned that the tax measure would ultimately result in higher prices for consumers.
Peter Hiltz, director of international tax policy and planning at Amazon, already called the digital tax harmful and discriminatory. In a statement, Amazon said that because the tax is aimed at the marketplace services they provided to businesses, they had no choice but to pass it down to selling partners.
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