Online sales tax has ‘overwhelming support’ of retailers

// Almost 90% of retailers back an online sales tax, according to a survey by property specialist Colliers
// Click-and-collect is a divisive issue with 54% of retailers of the opinion that such sales should be subject to an online sales tax

The introduction of an online sales tax in the UK has the overwhelming support of both retailers and landlords, a survey by property specialist Colliers shows.

Of those surveyed, 89% supported a new tax, provided it eased the business rates burden.

The vast majority (71%) of retailers with an online presence supported the tax, however, the subject of click-and-collect divided opinion as 54% of those surveyed believed such sales should be subject to the online sales tax.

Colliers also asked what exemptions should be made from the online sales tax and 71% said essential items, 66% said sales via small retailers, and 66% said sales via web-based apps in stores.

The government revealed it would start a consultation on an online sales tax policy earlier this year, which is due to close on 20 May.


READ MORE: Notonthehighstreet CEO says online sales tax would be a mistake


Colliers head of business rates John Webber said: “It certainly seems there is overwhelming support to bring in some sort of online sales tax to try and level the playing field and take the full burden of business rates off bricks and mortar retailers.”

“We are not saying an online sales tax will solve all the issues facing the high street, and there are several grey areas as our survey shows. However, given the increasing trend of buying online – a trend that was amplified during the pandemic and looks likely to continue – it is only right that we should try and re-balance the system  and create a fairer playing field for all.”

Webber flagged that it was essential that any money raise from an online tax be used to alleviate the business rates burden.

It should also not take the government’s attention away from what is essential – a fundamental reform of the current business rates system,” he emphasised.

The British Retail Consortium (BRC) highlighed in its Retail, Rates and Recovery: How business rates reform can maximise retail’s role in levelling up report, published last September, that 83% of retailers said it is ‘likely’, ‘very likely’ or ‘certain’ that they will close shops if the business rates burden is not reduced

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