Overview

Amazon has announced a significant change to its digital services fee structure that will directly affect sellers operating in certain international markets. Beginning June 15, 2025, the company will stop charging the digital services fee related to Canada's digital service tax. For sellers in the UK, France, Italy, and Spain, however, the fee remains in place — but with a new, more predictable pricing model.

Key Points / What Sellers Need to Know

• Canada DST fee eliminated — As of June 15, 2025, Amazon will no longer pass along a digital services fee connected to Canada's digital service tax for businesses established in Canada or those selling on Amazon.ca.
• UK, France, Italy, and Spain still affected — Digital services fees will continue to apply for sellers in these countries, where governments have implemented their own digital service taxes.
• Typical DST rates vary by country — The standard rate is 2% in the United Kingdom and 3% in France, Italy, and Spain, though actual charges can fluctuate based on several factors.
• New fixed-fee model replaces variable pricing — Amazon is shifting from a location-variable calculation to a fixed digital services fee based solely on the seller's business location and the specific Amazon store where they sell.
• Greater cost predictability for sellers — The new structure eliminates the unpredictable element of buyer location from the fee calculation, giving sellers a clearer picture of their costs upfront.

What Is the Digital Services Fee?

The digital services fee is a charge Amazon applies to seller accounts to offset digital service taxes imposed by certain national governments. These taxes, commonly known as DSTs, target revenue generated by large technology companies from digital services provided within a country's borders. Rather than absorbing these costs entirely, Amazon passes a portion along to sellers through the digital services fee. The fee has historically been calculated using variables including the seller's business location, the buyer's location, and the specific Amazon marketplace involved, making it difficult for sellers to predict exact charges in advance.