Amazon is increasing seller fees on its French marketplace by 3% to offset the digital tax imposed by the government of France.
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The online retail giant has informed small and medium-sized businesses on its eCommerce platform of the fee hike starting in October, saying it had no choice but to pass it down to them.
The new tax law applies to all companies that generate €750 million or more in global revenue and €25 million in France. Tech giants Google, Amazon, and Facebook rallied behind President Donald Trump in yesterday’s public hearing which was held in connection with the investigation of the digital tax. They claimed that it has unfairly targeted US companies.
Trump ordered the investigation and threatened the French government that their decision will face a reciprocal action.
The French officials, however, believe that the new tax law will level the playing field and generate €500 million euros annually.
“The fact that such companies pay less tax in France than a large bakery or a cheese producer in Quercy creates a real problem.” – Bruno Le Maire, Finance Minister, France
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