British Independent Retailers Association (BIRA) is calling on retailers to give their feedback over Online Sales tax (OST).
In February, the UK Treasury published a new consultation titled: ‘Online sales tax: assessing an option to help rebalance taxation of the retail sector’. This wide-ranging consultation asks whether the UK should introduce an online sales tax (OST) and, if so, what form it should take.
OST is expected to address the imbalance and level the playing field between bricks and mortar stores and online retailers.
Calling all the retailers to take part in the consultation, Andrew Goodacre , CEO of BIRA, said that this survey is a chance to help influence the government regarding the implementation of an OST.
“It does not mean one is definitely coming. The focus of the government’s consultation is to better understand how such a tax might be designed and the impact it might have.
“Indie retailers have a clear view that business rates are an unfair burden. There has also been a clear view that the large internet companies do not pay their fair share of tax. Finally, we have always wanted to see a more ‘level playing field’ for physical stores.
“However, we also recognise that more smaller retailers are now trading on-line as a result of the pandemic so an OST may not be the best way of addressing the burden of business rates. This is why we want to hear from you,” he said.
Bira has always campaigned for lower business rates and the government has confirmed that income from an OST would be used to reduce rates. Bira has also campaigned to reduce the admin burden on smaller retailers and make taxes proportionate.
“With regards to an OST, we feel there should be a sales threshold (for online sales) of £2M, and businesses with online sales below this threshold should be exempt,” Goodacre said.