Amazon sellers become cannon fodder? Europe is going to impose new taxes!

The Sino-US trade war has come to an end, and the latest round of negotiations between the two sides is also coming to an end. Now it is only a matter of time before China and the United States shake hands and make peace. However, the United States is not calm at all, and at this juncture, it is about to have a conflict with Europe again.

First, the United States announced that it would impose tariffs of up to $11 billion on products from the European Union, in order to crack down on the EU's subsidization of competitors of American aviation giant Boeing.

As soon as the news came out, the entire European Union was furious and directly announced on its official website that it would begin to impose punitive tariffs on American products .

Why is it that Europe and the United States have always had a good relationship, but the United States chose to fight with Europe when it had just fought a trade war with China and was severely weakened?

Ultimately, it’s all because of one word: tax !

We all know that while Amazon made profits of over 10 billion U.S. dollars last year, it did not pay a penny of tax to the U.S. government. The U.S. government is also studying how to make Amazon pay taxes by distributing its profits.

Since Amazon doesn’t even collect taxes in the United States, one can imagine its situation in Europe. However, the European market is second only to the United States for Amazon , so it must be making a lot of money.

Amazon has made so much money in its own territory, and the EU will naturally not let go of this piece of fat meat. In March of this year, France took the lead in announcing the official start of

To American Internet giants led by Amazon

A 3% digital tax

According to estimates made by the French Finance Minister, the new tax will raise around 500 million euros for the French government each year.

However, this tax is not the first time it has appeared. The last time France put this tax policy on the EU conference table and wanted to make this tax a collective standard of the EU, it was fiercely opposed by member states such as Ireland, Sweden and Denmark.

How could anyone refuse to tax these big companies directly? Of course, these member states have very good reasons to refuse. These technology giants are all American companies. If they are taxed directly, the United States will definitely sanction the EU.

The same is true in real time. As soon as the news came out, the White House stated that the EU's "fair taxation" initiative against American Internet giants was a complete attack on American companies .

Even Germany, which initially expressed support for the bill, kept silent about the proposal when facing France after the White House made its statement.

Now France has insisted on its own way and directly implemented this tax policy in March this year, and hopes that by taking the lead, more EU member states will join the taxation.

The United States is obviously dissatisfied with this action. The White House has already said that it will regard this tax as an attack on American companies. In the end, you still implemented this policy. Where is the face of Big Brother if you don't take immediate action to sanction us?

This leads to the current situation at the beginning of the article, where the EU and the US have set punitive tariffs on each other and a trade war is imminent.

Having said that, " when the gods fight, the mortals suffer. " The game between the EU and the United States has resulted in giants such as Amazon being subject to additional taxes. What will Amazon do after being regulated and taxed by the government?

That’s right, just like the FBA miscellaneous fees and taxes mentioned last time, once Amazon is sure that the sellers are reluctant to leave its platform, it can unscrupulously pass the costs on to the sellers.

The FBA miscellaneous fees and platform taxes originally levied on Amazon are now paid directly by the sellers (click here for details)

We might as well make a general inference here. Once the EU starts to unanimously impose a 3% digital tax on Amazon, this money would originally have been Amazon's profit.

According to Amazon's practice (refer to the FBA miscellaneous taxes above), it is possible that a simple backend push notification is sent.

“EU countries begin to impose digital sales taxes”

This will directly require sellers to pay the taxes that Amazon should have paid. Considering that nearly 40% of sellers in the European market are Chinese sellers (there is no way to complain or take legal action to protect their rights)

It is not impossible that this policy will be directly implemented, and Chinese sellers on the European site will become the only victims.

Of course, this situation is quite extreme, and the EU has recently greatly increased its supervision and restrictions on Amazon regarding the relationship between third-party sellers and the Amazon platform. I believe this situation basically only exists in speculation.

The best case scenario for sellers is that Europe abandons its digital tax policy after fighting a trade war with the United States.

The outcome of the game between the two cannot be inferred yet. Students who are on the European site or want to join should still plan high-profit product routes in advance to cope with future cost increases.

Sellers who want to learn more about high-profit product creation techniques can get a complete set of operating techniques from me~

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

In addition, in order to provide an effective and timely solution platform for Amazon sellers to solve the operational problems they encounter on a daily basis, we gathered together big sellers from various industries in June last year to operate an exclusive knowledge sharing circle.

In addition to the fixed daily Q&A sessions , 12 guest sellers from different fields will also regularly share their Amazon experiences and skills in the circle.

Daily Q&A

Experience Sharing

Tips

At the same time, the circle will provide some free operation software and usage tips from time to time, and also enjoy the green channel of various Amazon official activities (such as high-quality investment managers, BD resources, Primeday Exclusive, etc.)

Want a big seller to help you with sales? Simply scan the QR code below to join and view more content in the circle.

Source: Cross-border Business School

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