Apple, Amazon, and Google hike their developer, seller, and advertising fees in response...

nanoguy

Posts: 568   +8
Staff member
The big picture: The efforts of the OECD to get almost 140 governments on board with a new global framework for taxation have mostly prevented a patchwork of national measures. However, some European countries aren't willing to wait, which is why tech giants like Amazon, Apple, and Google have now increased their developer and advertising fees, despite previously showing their support for new international tax rules.

Earlier this year, several countries in Europe -- including the UK, France, Austria, Italy, Poland, and Turkey -- revealed a new digital services tax that would be imposed on tech giants and advertisers later this year. This is partly the result of very slow progress in the OECD's efforts to get 137 countries to reach an agreement on new international tax rules, which would prevent any tax avoidance practiced by multinational corporations.

The OECD did manage to convince countries like Spain, Belgium, France and Germany to wait until the end of this year in the spirit of better alignment with a preliminary draft of upcoming international tax rules and lowering compliance costs for the companies affected by these changes. However, other countries have decided to go ahead with their own digital services tax, starting with the UK in November.

The tax rate varies by country, ranging from 1.5% in Poland to 7.5% in Turkey. Something worth noting is that it will only apply to companies with an annual revenue of more than $750 million per year, which is why Apple, Amazon, and Google have announced a sucker punch for developers, third-party sellers, and advertising clients in those countries -- higher fees.

All three tech giants note that this is the result of new tax rules, which would be completely normal in most circumstances. Currency fluctuations and ever-changing tax regimes often reflect in the price of the final products and services offered by these companies. However, the idea behind the new digital services tax was to put an end to tax havens and tax avoidance. Instead, it looks like the brunt of the measures will be felt by the little guys -- developers and advertising clients.

Google and Amazon explained in separate statements that they encourage all countries to focus on a clear set of international tax rules as opposed to implementing their own digital services tax. In the meantime, they'll be passing the added costs to third-parties until the OECD can come up with "rules that would be consistent across countries and clearer and fairer for businesses."

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ColdSoup

Posts: 80   +166
"it looks like the brunt of the measures will be felt by the little guys -- developers and advertising clients."

This should be extremely obvious to everyone involved. Nobody is ever going to willingly take a loss when there are legal requirements for you to maximize earnings to your investors.
 

tkabou

Posts: 123   +136
Socialism stings again...
Indeed it does. Next stop, Communism, where the states own the companies and developers of your apps and games, of which the revenues will be shared equally amongst all the citizens according to the propaganda, only for you to realize that you own nothing, are broke, and so is your neighbor because the state has the final say on what's whose.
 
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Mr Majestyk

Posts: 436   +363
Losers whining about socialism when they prefer the dog eat dog screwed up approach of Dumberica where the health and welfare are sad jokes and corporate greed is so far out of control it’s nauseating. If the scumbag Dumerican tech companies actually paid their fair share of tax like you losers we wouldn’t need the governments to take these measures.
 

Thanthan

Posts: 47   +97
They can do this because they Are effectively monopolies. And it has nothing to do with 'socialism'. Paying taxes is and has always been a part of Any normal, functioning society. Its unfortunate that these companies Arent being prosecuted for their anti competitive behaviour enough, let ting them pull these kinds of stunts towards smaller companies, but thats the issue here. Not that someone asked them to actually pay a little taxes.
 

corvard

Posts: 24   +16
They can do this because they Are effectively monopolies. And it has nothing to do with 'socialism'. Paying taxes is and has always been a part of Any normal, functioning society. Its unfortunate that these companies Arent being prosecuted for their anti competitive behaviour enough, let ting them pull these kinds of stunts towards smaller companies, but thats the issue here. Not that someone asked them to actually pay a little taxes.
Who are monopolies? Is Steam a monopoly? I live in Russia, and several years ago games on Steam were really cheap. But then they decided that Steam must pay taxes, and games became 3x expensive. But I agree it has nothing to do with socialism. It's about government. That's why you won't benefit from socialism, just because the government is involved.
 

Buhaj47

Posts: 90   +122
The article is a bit of a clickbait, in Poland for example it's unknown yet how the tax will look like, it's said it will cover VOD services.
 
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corvard

Posts: 24   +16
Losers whining about socialism when they prefer the dog eat dog screwed up approach of Dumberica where the health and welfare are sad jokes and corporate greed is so far out of control it’s nauseating. If the scumbag Dumerican tech companies actually paid their fair share of tax like you losers we wouldn’t need the governments to take these measures.
Oh, you want free stuff. How cute.
 
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eforce

Posts: 45   +39
Losers whining about socialism when they prefer the dog eat dog screwed up approach of Dumberica where the health and welfare are sad jokes and corporate greed is so far out of control it’s nauseating. If the scumbag Dumerican tech companies actually paid their fair share of tax like you losers we wouldn’t need the governments to take these measures.
Successful people whine about socialism because it puts a massive dent in their bank account.
 
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eforce

Posts: 45   +39
They can do this because they Are effectively monopolies. And it has nothing to do with 'socialism'. Paying taxes is and has always been a part of Any normal, functioning society. Its unfortunate that these companies Arent being prosecuted for their anti competitive behaviour enough, let ting them pull these kinds of stunts towards smaller companies, but thats the issue here. Not that someone asked them to actually pay a little taxes.
Socialism allows such monopolies to exist in the first place.
 

mgwerner

Posts: 89   +71
This is exactly what comes of any tax scheme - the cost is passed down to the lowest part of the chain - the consumer and the raw material provider.
 
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