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News_Amazon

Digital services fee effective October 1

The Canadian government recently implemented a digital services tax (DST), similar to those of the UK, France, Italy, and Spain. On October 1, 2024, we’ll introduce a digital services fee to account for DST.

While the typical DST rate is 2% in the UK and 3% in Canada, France, Italy, and Spain, DST charges are unpredictable as they vary based on the location of your business, the location of the buyer, and other factors. Rather than base the digital services fee on these location variables, which would create an unpredictable business impact because you can’t know the location of customers who will buy your products, we’ll introduce a fixed digital services fee based only on your location and the store in which you sell.

The digital services fee won’t apply to domestic sales if you’re established in the US and sell in the US store.

If you sell in the US store but your business is established in a country in which DST has been introduced (the UK, France, Italy, Spain, and Canada), the digital services fee will apply to sales made in the US store. The fee rate and what it applies to will vary based on the country in which your business is established. For example:

  • If your business is established in Canada and you sell a $15 item in the US store, you’ll be charged a 3% digital services fee ($0.07) on Selling on Amazon fees ($2.25) for sales starting October 1.
  • If your business is established in the UK and you sell a $15 item in the US store, you’ll be charged a 2% digital services fee ($0.05) on Selling on Amazon fees ($2.25) and a 2% digital services fee ($0.07) on FBA fees ($3.30) for sales starting October 1.

To better help you understand how this fee will affect your business, including rates by country and examples, go to Digital services fee.

Starting September 1, you’ll be able to preview the fee in the Revenue Calculator, and from October 1 you can track your digital services fees via the Transaction View in your Payments reports. If you use Remote Fulfillment with FBA, the digital services fee will be accounted for in our free Automate Pricing tool starting October 1.

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Seller_0Tjp2OBPFEQuk
In reply to: News_Amazon's post

If our business is established in a country other than the US, UK, France, Italy, Spain, or Canada, and we sell on the Canada store, are there any DST charges applied?

00
user profile
Seller_0xdtD36hDLHBC
In reply to: News_Amazon's post

Can anyone confirm this?

img

For MF order with a 15% referral fee...

For a $20 item, currently $3 fee. Will be $3 fee plus 6 cents?

Is the fee being charge in Canadian dollar or US dollars?

10
user profile
Seller_jjbGGIoNtmb6c
In reply to: News_Amazon's post

This needs to be re-written. It's not clear. Couldn't understand anything.

00
user profile
Seller_9MdSmMvZ83jn0
In reply to: News_Amazon's post

is this fee applied to all items sold? just digital content being downloaded or streamed?

00
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News_Amazon

Digital services fee effective October 1

The Canadian government recently implemented a digital services tax (DST), similar to those of the UK, France, Italy, and Spain. On October 1, 2024, we’ll introduce a digital services fee to account for DST.

While the typical DST rate is 2% in the UK and 3% in Canada, France, Italy, and Spain, DST charges are unpredictable as they vary based on the location of your business, the location of the buyer, and other factors. Rather than base the digital services fee on these location variables, which would create an unpredictable business impact because you can’t know the location of customers who will buy your products, we’ll introduce a fixed digital services fee based only on your location and the store in which you sell.

The digital services fee won’t apply to domestic sales if you’re established in the US and sell in the US store.

If you sell in the US store but your business is established in a country in which DST has been introduced (the UK, France, Italy, Spain, and Canada), the digital services fee will apply to sales made in the US store. The fee rate and what it applies to will vary based on the country in which your business is established. For example:

  • If your business is established in Canada and you sell a $15 item in the US store, you’ll be charged a 3% digital services fee ($0.07) on Selling on Amazon fees ($2.25) for sales starting October 1.
  • If your business is established in the UK and you sell a $15 item in the US store, you’ll be charged a 2% digital services fee ($0.05) on Selling on Amazon fees ($2.25) and a 2% digital services fee ($0.07) on FBA fees ($3.30) for sales starting October 1.

To better help you understand how this fee will affect your business, including rates by country and examples, go to Digital services fee.

Starting September 1, you’ll be able to preview the fee in the Revenue Calculator, and from October 1 you can track your digital services fees via the Transaction View in your Payments reports. If you use Remote Fulfillment with FBA, the digital services fee will be accounted for in our free Automate Pricing tool starting October 1.

686 views
7 replies
Tags:News and Announcements
015
Reply
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Digital services fee effective October 1

by News_Amazon

The Canadian government recently implemented a digital services tax (DST), similar to those of the UK, France, Italy, and Spain. On October 1, 2024, we’ll introduce a digital services fee to account for DST.

While the typical DST rate is 2% in the UK and 3% in Canada, France, Italy, and Spain, DST charges are unpredictable as they vary based on the location of your business, the location of the buyer, and other factors. Rather than base the digital services fee on these location variables, which would create an unpredictable business impact because you can’t know the location of customers who will buy your products, we’ll introduce a fixed digital services fee based only on your location and the store in which you sell.

The digital services fee won’t apply to domestic sales if you’re established in the US and sell in the US store.

If you sell in the US store but your business is established in a country in which DST has been introduced (the UK, France, Italy, Spain, and Canada), the digital services fee will apply to sales made in the US store. The fee rate and what it applies to will vary based on the country in which your business is established. For example:

  • If your business is established in Canada and you sell a $15 item in the US store, you’ll be charged a 3% digital services fee ($0.07) on Selling on Amazon fees ($2.25) for sales starting October 1.
  • If your business is established in the UK and you sell a $15 item in the US store, you’ll be charged a 2% digital services fee ($0.05) on Selling on Amazon fees ($2.25) and a 2% digital services fee ($0.07) on FBA fees ($3.30) for sales starting October 1.

To better help you understand how this fee will affect your business, including rates by country and examples, go to Digital services fee.

Starting September 1, you’ll be able to preview the fee in the Revenue Calculator, and from October 1 you can track your digital services fees via the Transaction View in your Payments reports. If you use Remote Fulfillment with FBA, the digital services fee will be accounted for in our free Automate Pricing tool starting October 1.

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Seller_0Tjp2OBPFEQuk
In reply to: News_Amazon's post

If our business is established in a country other than the US, UK, France, Italy, Spain, or Canada, and we sell on the Canada store, are there any DST charges applied?

00
user profile
Seller_0xdtD36hDLHBC
In reply to: News_Amazon's post

Can anyone confirm this?

img

For MF order with a 15% referral fee...

For a $20 item, currently $3 fee. Will be $3 fee plus 6 cents?

Is the fee being charge in Canadian dollar or US dollars?

10
user profile
Seller_jjbGGIoNtmb6c
In reply to: News_Amazon's post

This needs to be re-written. It's not clear. Couldn't understand anything.

00
user profile
Seller_9MdSmMvZ83jn0
In reply to: News_Amazon's post

is this fee applied to all items sold? just digital content being downloaded or streamed?

00
There are no more posts to display
user profile
Seller_0Tjp2OBPFEQuk
In reply to: News_Amazon's post

If our business is established in a country other than the US, UK, France, Italy, Spain, or Canada, and we sell on the Canada store, are there any DST charges applied?

00
user profile
Seller_0Tjp2OBPFEQuk
In reply to: News_Amazon's post

If our business is established in a country other than the US, UK, France, Italy, Spain, or Canada, and we sell on the Canada store, are there any DST charges applied?

00
Reply
user profile
Seller_0xdtD36hDLHBC
In reply to: News_Amazon's post

Can anyone confirm this?

img

For MF order with a 15% referral fee...

For a $20 item, currently $3 fee. Will be $3 fee plus 6 cents?

Is the fee being charge in Canadian dollar or US dollars?

10
user profile
Seller_0xdtD36hDLHBC
In reply to: News_Amazon's post

Can anyone confirm this?

img

For MF order with a 15% referral fee...

For a $20 item, currently $3 fee. Will be $3 fee plus 6 cents?

Is the fee being charge in Canadian dollar or US dollars?

10
Reply
user profile
Seller_jjbGGIoNtmb6c
In reply to: News_Amazon's post

This needs to be re-written. It's not clear. Couldn't understand anything.

00
user profile
Seller_jjbGGIoNtmb6c
In reply to: News_Amazon's post

This needs to be re-written. It's not clear. Couldn't understand anything.

00
Reply
user profile
Seller_9MdSmMvZ83jn0
In reply to: News_Amazon's post

is this fee applied to all items sold? just digital content being downloaded or streamed?

00
user profile
Seller_9MdSmMvZ83jn0
In reply to: News_Amazon's post

is this fee applied to all items sold? just digital content being downloaded or streamed?

00
Reply
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