Amazon, Apple, And Google To European Digital Services Taxes To Customers

When it comes to digital advertising and marketing, the names Amazon, Apple, and especially Google tend to be thrown around. To the people who’re most concerned with things like king kong marketing review, being on the good side of these companies amounts to a lot. There’s a reason that advertisers want space on these companies’ platforms.

That’ll be a bit more expensive now, as the three tech giants will be passing along the additional costs from Europe’s latest legislation; a digital services tax aimed at getting tech giants to pay more taxes.

Over the course of August, Apple, Amazon, and Google revealed their responses to the DSTs being implemented across Europe; passing on the costs to their enterprise customers. The digital services tax in the UK, for example, will increase the taxes on any revenue made by social media platforms, online marketplaces, and search engines by 2%, which will be added to fees.

For Apple, they’re changing how developer fees are paid on the UK branch of their App Store: on top of the 20% VAT it pays to the UK government for every purchase made on its store, it’ll be adding the 2% from the DST before spitting profits between them and the developer, which means that both Apple and their developer partners will make less profit.

Google, meanwhile, will just be bumping up fees for any advertising on Google Ads and YouTube by an appropriate amount (2% for the UK, 5% in Germany). Google issued a statement on the matter, saying that digital services taxes bump up the costs of digital advertising, something that’ll affect king kong marketing review and the like, and that they’re adding the fee from the taxation starting November 2020.

Effective September 1, Amazon will be upping fees for their third-party sellers by appropriate amounts. In a statement on the matter, the e-commerce giant said that they held off implementing the increase while the UK’s DST was in discussion.

Across Europe, countries are introducing national digital services taxes. France, Italy, Turkey have all introduced their own legislation, with Turkey implementing a 7.5% tax, which Apple is directly passing on to customers.