This past July, France passed a law implementing a 3% tax to the French earnings from 30 major companies. Most of these companies are from the U.S. and Amazon was definitely included. Amazon reacted by slamming their sellers with higher seller fees.
Level The Sellers...I Mean Field
Why has France decided to tax French revenues on foreign companies like Amazon? They want to level the playing field to allow French companies a better chance of generating domestic revenues. Billion-dollar corporations don't give much back to governments in the form of taxes – especially if the money is leaving the country completely. This digital tax in France was levied on such companies, but of course, why pay the tax yourself when you have the ability to pass the financial hit on to others?
That Poor, Poor Marketplace
U.S. President Donald Trump has already said that this tax unfairly targets American companies, with economists working at CNBC are on record saying that the tax measure would, for all intents and purposes, result in higher prices for consumers.
The director of international tax policy and planning at Amazon, Peter Hiltz, had this to say: “It will negatively affect the hundreds of thousands of small and medium-size businesses that use Amazon’s services to help reach customers in France.”
Ecommercenews.eu reported that Amazon, in a statement, said the tax is aimed at the services having to do with the marketplace they provide to businesses, giving them absolutely no choice but to pass it down to selling partners. “We recognize that this may place small firms in France at a competitive disadvantage to their counterparts in other countries.”
No matter how you look at it, or on which side you stand, tax and fee hikes typically affect the wrong people the most.