Amazon introduced a stand-alone digital services tax fees as a separate line item on your Amazon invoice from the 1st of October 2024. The rate was set at 2% for the UK, but Amazon will now apply the digital services fee based on the DST rate in the country of sale for France, Italy, and Spain stores for sellers established outside these countries
The UK Digital Services Tax is levied on the revenues of search engines, social media services and online marketplaces which derive value from UK users. It’s a response to businesses which are domiciled overseas and operate paying less that what is perceived as their fair share of tax based on their revenue generated from their UK operations. The Government described this as a misalignment between the place where profits are taxed and the place where value is created and other governments have agreed and introduced similar fees.
Speaking very bluntly, this is a fee that was introduced for large service providers, but Amazon don’t fancy paying it so are passing it on to you as the retailer. You face squeezed margins or have to pass the fee on to consumers and the impact the governments intended – taxing internet giants – is now a cost to you.
Now, Amazon say that as they continue to better align their fee rates to our underlying costs, they will apply the digital services fee based on the DST rate in the country of sale.
Starting on the 20th of March 2026, the following changes will take effect:
- If you’re established in the UK, a 3% digital services fee will apply on Selling on Amazon and FBA fees for sales in Amazon’s France, Italy, and Spain stores.
- If you’re established in Italy or Spain, a 3% digital services fee will apply on Selling on Amazon and FBA fees for sales in Amazon’s UK and France stores.
- If you’re established in any other country, a 3% digital services fee will apply on Selling on Amazon fees for sales in Amazon’s Italy, Spain, and France stores. A 3% fee will also apply on FBA fees for sales in Amazon France stores.
