How do you pay your taxes?
That’s the question we’ll be asking shoppers this week when they are given the option of using Amazon Prime.
The new retailer is the first to take the plunge into the tax code after a long battle to get a deal.
It was initially introduced in January and has been a hit, but has now seen sales plummet since.
Its launch coincided with a general election, with Prime memberships growing by more than 100% in the UK in the past year.
The retailer, which sells goods and services to customers from across the UK, said it expected to sell an additional 50m of Prime members’ products in its first year.
It has also been hit by an increasing number of other government cuts, such as the scrapping of the child benefit.
In addition to Prime, Amazon is also launching its own grocery delivery service, Amazon Fresh, in the US and plans to roll out grocery delivery across the world in the coming months.
It is the latest in a long line of Amazon businesses to take a hit.
Earlier this month, Amazon pulled out of the lucrative video-streaming service Vimeo, citing a lack of demand from video-lovers in the digital space.
But despite the negative publicity, Prime remains a very popular option for most shoppers.
A survey by research firm IDC showed that a whopping 86% of shoppers in the U.K. and Ireland bought a subscription to Prime in the previous year.
With its strong sales and ease of use, Prime is expected to remain a very big part of the economy.
And while Prime will be a big hit for the retailer, the tax implications are likely to be huge for some other companies too.
For instance, Amazon has been hit hard by the tax changes introduced by the Tories in the wake of the EU referendum.
Amazon will be able to save money by not paying a 10% tax rate on overseas sales, which is more than many other businesses in the economy could afford.
But the company could also see its prices rise.
“We are seeing an increase in the costs of shipping for Amazon, which will lead to a reduction in Prime membership in the future,” IDC said.
Amazon is the third largest online retailer in the world with about 1.5 billion members worldwide.
Prime members are able to get discounts on Amazon’s most popular items, such a books, electronics, and even shoes.
The company said it was investing $1.3 billion in its business in 2017, which it hopes to double to $4.5bn in 2018.