FILE PHOTO: the logo of The company, outside of an Amazon pop-up store in Berlin, Germany, on November 22, 2018. REUTERS/Fabrizio Bensch/File Photo
PARIS (Ap) – Amazon said on Friday it would go to the expense of a new French digital tax to consumers and business partners, warning that the measure could make it more difficult for a small number of companies, in France, in order to compete with foreign competitors.
The French Senate voted last month to approve a 3% levy on the tech giants’ revenue from services is earned in France, riling the US President, Donald Trump, who is threatening to impose retaliatory duties on French wines.
“We are not in a position to absorb the additional tax is based on turnover instead of profits,” Amazon said in a statement, citing fierce competition in the low margin retail business and the significant investment in digital tools and services.
“We don’t have any other option than to pass it on,” the Amazon said. “We have to recognise that this is a small French businesses have a competitive disadvantage vis-à-vis their competitors in other countries, as we have been … alerted the authorities.”
The French finance minister, said on Saturday that France would press ahead with the digital tax, as is the support of efforts to agree on a global tax levied by the Organisation for Economic co-operation and Development (OECD).
The other countries of the European Union, including Austria, great Britain, Spain, and Italy, have announced plans for their own digital tax.
Reporting by Laurence Frost; Editing by Edmund Blair