Germany makes Amazon, eBay sales taxes move

Germany makes Amazon, eBay sales taxes move

The German government is to make e-commerce ventures like eBay and Amazon liable for third party sellers who evade paying sales tax.

“We will not tolerate retailers on online marketplaces, especially those based abroad who are not within reach of the German tax authorities, doing business without paying sales tax,” says Ulrike Demmer, a government spokeswoman. “The bill is to protect honest businessmen from competitive disadvantages.”

The draft law, which needs to be approved by the German Bundesrat, the legislative body, and the Bundestag, the national parliament, will require online marketplaces to record transactions that may be taxable in Germany, making them liable for these in the process.

The country’s e-commerce sector was worth almost €60 billion in 2017, up by 11% from 2016.

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