Amazon.com cut ties with its Colorado affiliate marketers on March 8 after the US State forged ahead with its plan to introduce a mandatory Internet sales tax on e-businesses with an annual turnover exceeding USD100,000.
The measure voted on in the state Senate in February 2009, and introduced this month, obliged large providers of goods via the internet, and their marketing affiliates, to transmit sales statistics to the state, so that the Colorado state tax authorities could levy the 2.9% sales tax on purchases by Colorado consumers.
The bill was introduced as a first step to increasing sales tax compliance by Colorado taxpayers using the Internet to purchase items. Colorado is not the first state to implement such a move; authorities elsewhere have been unsuccessful in getting e-commerce giants to automatically levy and remit taxes due.
Initially the bill had been drafted to tax purchases clicked through via affiliate marketers but this was later dropped on the grounds that online retailers such as Amazon and Overstock had cut ties with affiliate marketers in three other states where this was tried.
Despite amending the proposals, Amazon cut its commercial ties with Colorado’s affiliate marketers on March 8, stating in a email to members of its associates program that “as a result of the new law, Amazon has decided to stop advertising through associates based in Colorado."
In response, Colorado authorities condemned the move as a “hostage-taking ploy”, questioning the firm’s reasoning for disbanding its Colorado marketers. "It's blackmail, it's flat-out blackmail," Jack Pommer, a Democrat representing Boulder and author of the original bill, was quoted by the Denver Post as saying.
"It shows the lengths to which they'll go to keep the advantage they have over other local businesses," he retorted..
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A law to ratify the Azerbaijan-Morocco DTA was tabled before Morocco's Cabinet on June 14, 2018.
Qatar's Government on June 14, 2018, confirmed that it had completed its domestic ratification procedures in respect of a DTA signed with Argentina.
Ukraine's Cabinet on June 6, 2018, approved a law to ratify a DTA Protocol signed with the United Kingdom.
Luxembourg and Vietnam agreed to continue negotiations towards a DTA Protocol at a June 15 meeting.
Sweden's Parliament on June 7, 2018, approved an amendment to the country's DTA with Switzerland to clarify the scope of the term pension fund in the agreement.
Switzerland's lower house of Parliament on May 29, 2018, approved DTAs with Kosovo and Pakistan.
The Moroccan Government has approved for ratification a DTA with the Republic of the Congo, it announced on May 29, 2018.
Argentina has approved a protocol to its DTA with Brazil, the Argentinian Official Gazette reported on May 23, 2018.
Brazil's upper house of Parliament on May 30, 2018, approved a protocol updating the DTA with Norway.
Hong Kong and Finland on May 24, 2018, signed a DTA.
Legislation ratifying a new DTA between Russia and Japan was submitted to the Russian State Assembly (the Duma) for approval on May 22, 2018.
Vietnam and Macau signed a DTA on April 16, according to a statement released by the Vietnamese Ministry of Finance on May 11, 2018.
Talks are continuing on a DTA between Jordan and Switzerland, according to a statement released by Jordan's Foreign Ministry on May 14, 2018.
The Czech Senate approved a law to ratify the DTA with Ghana on May 17, 2018.
The Philippines-Thailand DTA entered into force on March 5, and the Philippines' DTA with Sri Lanka on March 14, the Filipino tax agency announced on May 17, 2018. They will be effective from January 1, 2019.
Jordan's Minister of Planning and International Cooperation met with Luxembourg's Finance Minister to discuss enhanced cooperation between the two countries in a number of areas and agreed to seek to conclude a DTA.
Uzbekistan and Lithuania are to engage in talks towards a DTA, Uzbekistan's state news agency reported May 9, 2018.
Two Georgian committees approved the text of a DTA with Saudi Arabia and forwarded it for ratification, according to a May 17 announcement on the Georgian parliament's website.
Hong Kong gazetted an order to ratify its DTA with Saudi Arabia on May 18, 2018.
Talks are continuing on a DTA between Turkey and Afghanistan, according to a statement released by Turkey's Ministry of the Interior on May 11, 2018.
A new DTA between Finland and Spain will enter into force in January 2019, according to a May 18, 2018, announcement from the Finnish tax authority.
Andorra and Cyprus have signed a DTA, Andorra's Government announced on May 18, 2018.
Singapore and Brazil signed a DTA on May 7, 2018.
A DTA between Morocco and the Congo was signed on April 30, 2018.