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U.S. retailers are not the only ones facing unfair competition from online merchants unhindered by the same tax burdens. Their European counterparts are increasingly up in arms over what they see as an uneven playing field.
U.K. retailers have long complained that they are outcompeted by e-tailers that are free of having to pay property taxes, notes The Drum. Now U.K. Chancellor of the Exchequer Phillip Hammond says he is considering a digital tax that will help level the playing field. In a letter to Parliament, Hammond says he wants to “find a better way of taxing the digital economy.”
Meanwhile, Ireland’s biggest retail organization, Retail Excellence, has called on the government to implement “tax fairness measures” that help physical retailers compete with online merchants not required to collect and remit consumption taxes, The Irish Times reports.
The U.S. Supreme Court ruled last week that states can require most online retailers to collect and remit sales taxes, overturning an earlier ruling that only e-tailers with a physical presence in a state can be required to do so.
By Edmund Mander
Director, Editor-In-Chief/SCT
