Ebay has assured its sellers that it will not pass the two per cent “Digital Services Tax” on to them unlike its larger rival Amazon.
Last week Amazon informed its merchants that it would be raising seller fees by two per cent, passing the cost of the government’s new Digital Services Tax directly to them.
Many sellers questioned whether Ebay, which has also been required to pay the new tax since April 1, would follow suit.
“Ebay is one of the marketplaces which will have to pay the new tax – and a lot of you have asked whether we at Ebay will be passing on this tax to our sellers in the form of new fees,” the online marketplace said in a note to its merchants.
“We wanted to reassure you that we won’t do that, so you will not be charged additional new fees as a result of this tax.
“A big thank you to all 300,000 of you who sell on our platform and continue to make Ebay a diverse and vibrant marketplace for sellers of all sizes.”
The Digital Services Tax was set up to ensure search engines, social media services and online marketplaces which derive value from UK users pay their fair share of taxes, adding a two per cent levy on all revenues with hopes of raising £500 million a year.
The government has also proposed an additional “Amazon Tax” which would impose a similar levy on all online sales.
Concerns have been raised that Amazon would employ a similar tactic should this be imposed, which could end up seeing sellers face a four per cent cost rise.