Amazon plans to pass on the costs of France’s new digital tax on internet giants to the businesses that use its Marketplace platform for finding customers, instead of taking the hit itself, the US online retailer said, reports FRANCE 24.
The levy, approved last month, put France at the vanguard of countries seeking to force big technology firms to pay more in the markets where they operate - but has garnered threats of retaliation from US officials.
Applied retroactively from January 1st, it sets a three percent levy on the profits from providing online sales for third-party retailers, as well as on digital advertising and the sale of private data.
“As we operate in the very competitive and low-margin retailing sector, and invest massively in creating new tools and services for our clients and vendor partners, we cannot withstand an additional tax,” the company told AFP in a statement on Thursday.
“This could put smaller French firms at a competitive disadvantage to their peers in other countries, and like many others, we have alerted the authorities,” it said.
French President Emmanuel Macron’s government went ahead with the so-called GAFA tax, an acronym for Google, Apple, Facebook and Amazon, after failing to secure an EU accord on how to plug what it considers a fiscal loophole.
American internet heavyweights often route their EU profits to member states with low corporate taxes such as Ireland or Luxembourg, allowing them to pay next to nothing in countries where they make huge profits.
According to the French economy ministry, around 30 large companies would be required to pay the tax, notably those with global revenues of at least 750 million euros ($831 million) and revenues of at least 25 million euros in France alone.