We’re still considering the various possible ramifications of the mooted online sales tax or Amazon Tax. Welcome to the latest video from #TamebayTV: one of our weekly YouTube updates and this week we look at a variety of stories including the latest announcements and news from marketplaces and the world of ecommerce.
(And if you can’t view the video above, you can find it on YouTube here.)
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When it comes to the so-called Amazon Tax (which is probably a shorthand term that isn’t that useful or accurate) there is is still virtually no information available about what it might mean in reality. Which does make us fairly suspicious that it could just be an ‘August silly season’ story. However, we’re certain it won’t ‘save’ the High Street: an examination of Business Rates is the better answer on that front.
Here are the stories referenced in the video on TamebayTV:
The UK government wants an international ‘Amazon Tax’ on online sales
3 unanswered questions about Hammond’s ‘Amazon Tax’
Booksellers demand Amazon Tax “quickly”
And we have reported a variety of Amazon stories:
Amazon is considering a UK insurance comparison site
And now showing at Amazon Cinemas…
Amazon Logistics express interest in Homebase stores
And if you want to take a look our recent Delivery Position paper, as mentioned in the video, you can find it here.
9 Responses
The point is – as it stands – the government can’t afford to reduce business rates (raises £26bn per year – 2016). Bring in an “internet tax” and there are more options. If the Tories don’t do it, surely Corbyn will.
It may be sold to the public by calling it a “Save the High Street tax” (though I suspect only some will go to reducing business rates). May be some of the dosh will go to increasing the availability of high speed internet etc
The Amazon tax is the idea of the large corporate landlords in this country ( of which there are many ) who after years of sitting there watching the profits roll in are now struggling as their precious high st golden egg properties no longer generate the income they once did despite their efforts to keep the rents where they where or even keep increasing them. This is why we see so many empty properties in high streets up and down the country. These corporations and pension funds carry a huge amount of clout in government. In many areas there are plenty of people out there with great ideas for high street based businesses but they just cant get them off the ground as the rents are simply too high. The much needed re-alignment of high st property pricing is going to take a long time but shoving in an online sales tax is just going to create more issues than its worth and its only staving off the inevitable. The retail map is changing dramatically, its not going back and cheaper rents and rates are the way to keep it alive not trying to financially punish the new wave.
People who don’t know anything about trading on the internet assume that we have no overheads. I don’t have a warehouse but many online businesses do. My Ebay, Amazon, and paypal fees would comfortably pay the rent and rates on a small shop, we also pay VAT and corporation tax. Lowering the VAT threshold from £85,000 to £40,000 might be a better idea.
The high street will be more vibrant when smaller innovative businesses can afford high street shops. More online stores would also choose to have a high street presence. Large high street businesses have made the high street boring.