Indeed, you need a 2900 sq.ft warehouse when you sell small quantities lol
Why are you here? Are you not taking advantage of their market position to sell to their customers? Nobody forces you to be here if you feel your margins are being squeezed. As far as how they work their tax affairs I hear the argument time and again, “they have a turnover of hundreds of billions so should be paying their fair share of taxes on it” but it isn’t them that produces it is it? it is sellers like you and me that are selling hundreds of billions a year. Amazon are just taking a cut and utilising most of it to grow their business which is being tax efficient and are tax deductible business expense just like the ones you claim. They are tax efficient which is the moral obligation of any company. Maybe they should base tax calculation on turnover alone then they will no longer be what you term tax dodgers but then you would moan that your tax was increasing as you could no longer claim your business expenses so the wheel turns. Whats the difference between you claiming your allowable business expenses and Amazon doing it and whats the difference between you passing on your costs to your buyer or Amazon doing it and whats the difference between Amazon absorbing costs and you absorbing costs. Its not about being apologetic its about being in business. It doesn’t matter if you’re a multi million pound company or a small trader the rules are the same. You negotiate the best terms for your business when and were you can. If its too hot for you why use them?
This was what the Government intended when it imposed this tax :-
## General description of the measure
From 1 April 2020, the government will introduce a new 2% tax on the revenues of search engines, social media services and online marketplaces which derive value from UK users.
## Policy objective
The application of the current corporate tax rules to businesses operating in the digital economy has led to a misalignment between the place where profits are taxed and the place where value is created. Many of these digital businesses derive value from their interaction and engagement with a user base.
__Under the current international tax framework, the value businesses derive from user participation is not taken into account when allocating the profits of business between different countries. This measure will ensure the large multinational businesses in-scope make a fair contribution to supporting vital publ_ic services.
How it ended up was a further tax on UK small businesses, struggling to recover from the effects of the pandemic.
Smart eh ?!
Yup they aint daft they well dodged it no surprise.
It would not even be as much of a kick in the teeth if they had not put the full 2%on us.
I’ve just emailed my local MP and had a quick response that they too agree and will bring it up again with the government. It’s John Redwood, so not a small time MP. I would advise you all do the same, the more we push back against this the better
I am also writing to my local MP Jo Stevens, Labour’s Shadow Secretary of State for Digital, Culture, Media and Sport
Againas I said above the only problem being is that if we win they will only increase fees by around 2% sometime in the near future, the mistake Amazon made was to say that it was due to the government tax.
Does anyone know if the 2% fee is applied to ALL UK based sales? (eg a Chinese company fulfilling in UK, but based in China)
Not only that. Amazon will be sending free return labels to customers and will charge us for it.
Already started in usa.
This platform us getting worse to sell on and really not affordable. amazon making more money and small sellers just cant afford it on here anymore
I cant say I’m surprised that a company known for shirking its tax duties has once again, shirked its tax duties.
The fact that Jeff Bezos has made $7 Billion already this month after Amazons share prices increased, yet they decided to pass on a measly 2% of THEIR tax obligations to its sellers, shows you everything you need to know about the company.
I’ve written to my MP about this too and asked him to bring it up in Parliament.
To be honest I’ve looked at simply having my own retail store, the fees I pay eBay and Amazon are astronomical, eBay IS better value for money however
Jeff Bezos nees every penny, he’s so poor…
What’s the big problem? Do none of you pass on your own business costs to your customers in the form of your sale price?
You miss the point. It is Amazon’s ethics (or lack of them) which are in question. This is a big business tax applied by the UK govt, it is not supposed to be passed on to small businesses and sole traders.
Its corporate greed on an outrageous scale
@Zeb you can’t always do this on amazon though this is part of the problem, on own brand yes if you want to you can and we will probably increase those slightly not that we want to but the goods we buy from wholesale we can’t as we price match already against others…
The point of this tax was not to be passed down to us its for the big firms to take a little hit but they are taking 0 hit and passing it onto us directly which is just unfair.
Sorry, I don’t see the distinction. Our sales generate commision, and go into Amazon’s revenue.
It looks to me that the tax is aimed at getting tax into the UK government - not be offshored elsewhere, which is what the public are concerned about.
One thing I don’t think I’ve seen mentioned in all this above discussion is that whilst this is leading to Amazon adding a 2% rise to our fees, they are going to have to pay 2% tax on the total cost of all their own sales ie £100 sale to end user means £2 out of their pocket. Bear in mind that Amazon’s own sales account for about 50% of what they sell on .co.uk then this is something that I see as a good thing
Being able to increase prices or not is a separate problem and one caused by the effect of the marketplace unfortunately. I’m in the same position, most of my items I can’t increase in price. It’s the same when registering for VAT, you either pass it on, or you can’t and have to suck it up.
@Zeb because the tax is for “Large multi-national enterprises with revenue derived from the provision of a social media platform, a search engine or an online marketplace (‘in scope activities’) to UK users.”
I cant imagine anyone on these boards has a revenue of over £500m, so why are we paying this tax for them?
Amazon’s bots sent out countless warnings and suspensions over ‘price gouging’ to sellers in BMVD.
Rare 1st editions, signed collectables, hard to find OOP titles etc were automatically flagged as being overpriced even when they were well below the market average.
Something like a new seller seller listing way below the market average and then being undercut by Magpie WoB, Webuy et al might set off the bots.
It has/had nothing to do with price gouging per se.
Meanwhile, dodgy dropshippers are still selling bogus duplicate ASINs at many many times the ‘fair’ price.
All the while, Amazon promotes their actual price-gouged phantom ASINs while hiding genuine, much cheaper (and actually available/to-hand ) ISBNS and EANs from search.
Amazon’s system is effectively promoting price gouging dropshippers in BMVD.
The hypocrisy and shoddiness of it all is breathtaking.