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Digital services tax and selling on Amazon. How does DST in France, Italy, and Spain affect sellers' costs?
Last updated: 26/10/2026
The digital services tax was intended to burden the largest technology companies. In practice, however, its cost can appear much further down the chain – including on the bill of a seller operating on Amazon.
In France, Italy, and Spain, the Digital Services Tax (DST) rate is 3% of gross revenue from specified digital services. Amazon, like other tech platforms, passes this associated burden on to business users via an additional Digital Services Fee.
For sellers, this means another cost element that must be factored into sales profitability calculations. Significantly, the mechanism for applying the fee is not identical in each of these markets.
Table of contents:
What is the Digital Services Tax?
France, Italy, and Spain – where does the 3% DST apply?
How does Amazon pass the DST cost onto sellers?
How much can the Digital Services Fee cost a seller? An example
How does DST affect sales profitability and advertising costs?
Cost is only one side of expansion into FR, IT, and ES
FAQ – Frequently Asked Questions
Reading time: 4 minutes.
What is the Digital Services Tax?
Digital Services Tax, or DST, is a tax on specific digital services introduced unilaterally by individual countries in response to the lack of a global consensus on corporate taxation for tech giants. In Europe, it is also sometimes referred to as the “GAFAM tax” – after Google, Apple, Facebook, Amazon, and Microsoft.
Unlike income tax, DST is not levied on profit. The tax base is gross revenue, meaning the turnover generated from specified digital services. This includes, among other things, digital intermediation services, such as providing a marketplace to third-party sellers, targeted advertising, and the monetisation of user data.
Formally, the tax is therefore levied on the digital platform provider. In practice, however, technology companies can pass all or part of the resulting costs onto business users.
And this is precisely where DST becomes directly relevant to Amazon sellers.
France, Italy, and Spain – where does the 3% DST apply?
Although the rate is 3% across all three countries discussed, their qualifying thresholds differ.
France
France introduced DST in 2019. The rate is 3% of gross revenues generated within French territory.
The tax applies to companies that achieve at least:
EUR 750 million in global turnover,
EUR 25 million in revenue from digital services in France.
The scope covers online advertising, the sale of personal data, and digital intermediation services, including marketplace commissions.
Italy
In Italy, DST was introduced in 2020 and is also set at 3% of gross revenue.
The global revenue threshold is EUR 750 million. A notable difference is the abolition of the local revenue threshold, which was previously EUR 5.5 million. As a result, a global tech company exceeding the EUR 750 million threshold pays DST on transactions linked to an Italian user. The scope of the tax covers digital intermediation, targeted advertising, and data transmission.
Spain
The Spanish digital tax – Impuesto sobre Determinados Servicios Digitales (IDSD) – has been in force since January 2021.
The rate is likewise 3% of gross revenue from digital services.
The qualifying thresholds are:
a minimum of EUR 750 million in global turnover,
a minimum of EUR 3 million in revenue from digital services in Spain.
The tax covers online advertising, intermediation services, including marketplaces, and the sale of data.
Tax differences are just one aspect of expansion. We discuss the remaining issues related to entering foreign marketplaces in our article on cross-border selling on Amazon.
How does Amazon pass the DST cost onto sellers?
For a seller, more important than the tax structure itself is its practical impact on selling costs. Amazon introduced the Digital Services Fee, an additional charge related to digital services taxes. However, the mechanism differs depending on the marketplace.
In France, the 3% digital fee is added to both Selling on Amazon fees (such as referral fees) and FBA fulfilment fees.
In Italy and Spain, the 3% Digital Services Fee is added to Selling on Amazon fees, but not to FBA fulfilment costs.
This difference is significant when calculating profitability. The same product price, commission, or FBA fee does not necessarily mean an identical cost structure across every market.
How much can the Digital Services Fee cost a seller? An example
Let us assume that a product sold in France costs EUR 50.
With an Amazon commission rate of 15%, the Referral fee is EUR 7.50. Added to this is an FBA fulfilment fee of EUR 4.
The 3% Digital Services Fee will be charged on both of these items:
3% × EUR 7.50 = approx. EUR 0.23
3% × EUR 4 = EUR 0.12
The total additional cost will therefore be approximately EUR 0.35 on this transaction.
In isolation, the amount may seem negligible. The problem arises when you view it as one of many costs eating into your sales.
DST is not the only cost gradually eroding margins
The Digital Services Fee operates alongside other costs of selling on Amazon. Marketplace commissions, rising CPC rates, FBA aged inventory surcharges, and fees stemming from DST can collectively cause a gradual decline in profitability. That is why cost analysis should not stop at the product sourcing price, Amazon commission, and basic logistics costs.
What is needed is a look at the full Total Cost of Ownership (TCO) – that is, all the costs that actually go into selling a product in a given market. This is particularly crucial during international expansion. A product that appears profitable in a baseline calculation may, after accounting for additional fees, yield a significantly smaller margin than projected.
Not just Amazon. DST also affects advertising costs
The mechanism of passing on digital tax costs is not limited to Amazon. Google applies Country Specific Surcharges, which are additional fees included on advertising invoices. In the case of France, Spain, and Italy, these amount to 3%.
For Meta, depending on the billing method, DST costs may be incorporated into advertising service prices or added to the final invoice. This means that DST can simultaneously affect several elements of your digital sales model – from marketplace fees to advertising spend.
Why is it worth looking beyond the 3% rate alone?
The biggest mistake would be to treat the Digital Services Fee as just another minor line item on an invoice. If a seller analyses each fee in isolation, it is easy to overlook their cumulative impact on the bottom line. Only by comparing commissions, logistics, advertising, and additional fees together can you see the true cost of sales.
That is why comprehensive Amazon account management should factor in not only revenue growth, but also an analysis of operational costs and the profitability of individual markets.
In this context, TACoS (Total Advertising Cost of Sales) also becomes vital. It allows you to look at advertising costs relative to the brand's total revenue, rather than analysing campaigns completely detached from the rest of your sales.
DST adds another cost on both the platform fee side and – within the wider digital ecosystem – advertising. Managing profitability therefore requires viewing these elements as a whole.
Cost is only one side of expansion into FR, IT, and ES
When entering France, Italy, or Spain, it is not enough to simply ask whether your margins can absorb the additional fees.
The second critical area is compliance.
When selling in these markets, key considerations include VAT OSS registrations, EPR requirements covering packaging or e-waste/WEEE, and mandatory product labelling.
You can read more about the tax obligations associated with international selling in our guide to VAT OSS and Amazon FBA.
Non-compliance can halt your sales much faster than additional tax costs. A decision to expand should therefore consider profitability and regulatory readiness in parallel. Market attractiveness or product sales potential alone will not suffice if the cost model fails to account for all liabilities, or if your business is unprepared to meet local requirements.
Summary: 3% can matter more than the figure suggests
The Digital Services Tax is formally aimed at major technology companies. From a seller's perspective, however, what matters most is what happens to that cost further down the line.
On Amazon, it surfaces as the Digital Services Fee. In France, it applies to both Selling on Amazon fees and FBA fees. In Italy and Spain, it is levied on Selling on Amazon fees, but not on FBA fulfilment.
This is another variable to consider when calculating true sales profitability in specific markets. Therefore, before expanding or when re-evaluating performance, it pays to look beyond just revenue, commissions, or ACoS. Combining marketplace costs, FBA, advertising, additional fees, and compliance requirements provides a far more complete picture.
Because ultimately, the issue is not a single 3% fee. The problem begins when several other “small” costs are left out of the equation.
FAQ – Frequently Asked Questions
1. What is the DST digital tax and how does it affect selling on Amazon?
The Digital Services Tax (DST) is a tax on revenue from specified digital services, covering, among others, marketplace platforms and online advertising. While it is formally levied on large technology companies, Amazon can pass the associated costs onto sellers through an additional Digital Services Fee.
2. How much is the digital services tax in France, Italy, and Spain?
In all three countries, the DST rate is 3% of revenues from specified digital services. However, individual nations apply different conditions and qualification thresholds. For Amazon sellers, the most critical factor is how the platform calculates and charges the additional fee.
3. Does Amazon charge the Digital Services Fee on the total sales value of a product?
No. The Digital Services Fee is calculated on specific Amazon fees, not directly on the product's total retail price. The basis on which it is calculated depends on the marketplace, so it is advisable to check both marketplace commissions and logistics fees.
4. How is the Digital Services Fee calculated on Amazon in France?
In line with the described mechanism, Amazon adds a 3% Digital Services Fee in France to selling fees, including the Referral Fee, and to FBA fulfilment fees. For instance, with a commission of EUR 7.50 and an FBA fee of EUR 4, the additional fee comes to approximately EUR 0.35.
5. Does the Digital Services Fee cover Amazon FBA costs in Italy and Spain?
According to the rules outlined in the article, in Italy and Spain the 3% fee applies to Selling on Amazon fees, but does not cover FBA fulfilment fees. This means that the sales cost structure can vary between these marketplaces, even with an identical product price.
6. Does the DST digital tax also affect Google Ads costs?
Yes. Google applies Country Specific Surcharges for certain jurisdictions. The article highlights a 3% rate for France, Italy, and Spain. Such surcharges can increase the overall cost of advertising campaigns.
7. How should the Digital Services Fee be factored into Amazon profitability calculations?
The Digital Services Fee should be treated as an additional cost of doing business and factored in alongside Amazon commissions, FBA logistics, advertising, and other expenses. It is best to assess profitability separately for each marketplace and product, as the scope of applied fees may vary.
8. What additional obligations apply to selling on Amazon in France, Italy, and Spain?
Beyond analysing DST costs, sellers should verify their obligations regarding VAT, the OSS scheme, EPR, WEEE, and product labelling. Their scope depends on the product category, logistics model, and destination market. When expanding, it is vital to evaluate both profitability and compliance with local requirements.
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