Digital Services Tax: Taxes on taxes
The first digital services taxes can now be seen on the payments page under transactions.
My question is this: Why is VAT being charged on DST? By the .gov definition, DST is a tax. You cannot tax a tax, however Amazon are doing so at the standard rate of VAT. If amazon are deeming this a fee, not a tax (which would be incorrect, it is a tax, not a fee) then that would mean we are still liable for DST, separately, as sellers.
Related but off-topic, where are the reports detailing the overall capture of these fees for a given period? It seems Amazon have very ironically removed as much information from date-range-reports as possible. They are also not available in the VAT library.
Digital Services Tax: Taxes on taxes
The first digital services taxes can now be seen on the payments page under transactions.
My question is this: Why is VAT being charged on DST? By the .gov definition, DST is a tax. You cannot tax a tax, however Amazon are doing so at the standard rate of VAT. If amazon are deeming this a fee, not a tax (which would be incorrect, it is a tax, not a fee) then that would mean we are still liable for DST, separately, as sellers.
Related but off-topic, where are the reports detailing the overall capture of these fees for a given period? It seems Amazon have very ironically removed as much information from date-range-reports as possible. They are also not available in the VAT library.
9 replies
Seller_EkGoiphKgUnUI
Im sorry, we cant listen to your issue until you pay the Amazon ForumTax...
Seller_IC5dxZRZpcM4T
unfortunatley, amazon are on a winner with the dst. As a fee they can charge vat on it, but if they are charging a tax then you are right they cant (usually) charge tax on tax, exceptions like inheritance tax is one example of double taxation.
The DST rule allow for Amazon to have a tax free amount of 25million, i think before tax is chargeable on all turnover over that sum. unfortunately they cant apportion that to the businesses they are servicing, but they can charge the dst of 2% or in some regions 3% as a dst fee. which they can use to offset against their bill. Fortunately for Amz the bill will be 25million x 2% tax free which is profit for Amz straight to the bottom line.
Seller_voW9gFQs6cI1A
not only that most small sellers legally do not even need to pay it if you are under 25 million so amazon are forcing a tax onto sellers that have no legal obligation to pay it
Seller_CNXMnZmfYYY3b
What report will you use to claim back with vat of DST?
Seller_6j4opF67t253D
or is this 2% DST just a fee Amazon has created to cover the real 2% DST they have will have to pay. In effect they should also be paying 2% on this additional DST fee that are charging us.
Seller_lnDDxVUakxGi5
I was thinking the exact same thing. Am assuming and hoping we can claim the VAT back on the Digital service fee a bit like the new tax on amazon fee for EU countries in which we claim back through our home state (UK).
Seller_nRhZxElkqUPAM
Just pathetic Governance - inability to legislate in a way which stops Amazon from passing the buck. Same as when they tried to make Landlords not be tied to Pub Co's... but failed
